What Should I Do First?
Financing a home in today’s market can be like a roll of the dice:
· Who should I call?
· Can I trust my mortgage lender?
· Am I going to be overcharged?
· Will I be placed in a loan I can’t afford?
Are these some of the questions running through your mind??
Be Prepared
If you are looking to purchase a home, be prepared before you start. Unfortunately, too many people get caught up in the excitement and they will start looking at homes they cannot afford. First things first, GET PRE-APPROVED!
Pre-Approval is the most important part of the process. Before meeting with a real estate agent, know what your options are -how much do you want to spend on your home. What you want and what you can afford and qualify for are 2 different things. First, you should contact a loan consultant to obtain a pre-approval. This will alleviate wasting your time looking for a home you cannot afford. Instead, you can focus on looking for your ideal home to fit your needs! With this pre-approval, you can contact a realtor, and they will be able to show you homes in your price range.
Points To Think About
Your Finances - Determine what you are looking for, and how much you can afford. Know that on paper, you might qualify for more, but always allow for unexpected expenses that occur in life. Set a monthly dollar amount that “YOU” feel comfortable with!
Credit Report - Do you know what’s on your credit report? Do you have past issues that might come up? Be prepared to provide documentation necessary to help clear this up.
Loan Details - How long do you plan to live in the house? How much do you have for a down payment? Do you have funds for closing costs? What type of loan are you looking for?
Applying For A Loan
When applying for a mortgage loan, you will be required to provide documentation to verify the information you list on your loan application. Your loan consultant will provide you with a list of the documentation required. (ie: pay stubs, w2’s tax returns, bank statements, etc.)
Interest Rates
Interest rates change daily. Depending on the market, they can change several times in one day! Locking your loan rate in writing will guarantee you a certain rate and terms for a specific period of time. Note, on a purchase, the rate can only be locked when a fully executed purchase contract is received. Be sure your loan consultant goes over the lock with you.
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