Most people find a real estate agent, find the home, and make an offer, then scramble to find a mortgage loan.
Let me give you a few reasons why I think you should consider taking care of the mortgage first.
A large portion of contract extensions are written because the financing is not finalized by the closing date on the contract. No one likes this. The real estate agents are doing extra work. The sellers have made plans based on the closing date in the contract. An extension can also require you to put additional money down.
Approval for a mortgage is not guaranteed. A high credits score is not the only criteria.
Can you really afford the home? When you find the home you want it becomes an emotional transaction. When that occurs it's easy to make a "from the hip" decision that you can afford a home that you really can not.
A full review of your financials and your family needs, along with your long term housing goals by a mortgage professional before you start looking will have you shopping in a price range that is right for you.
Real Estate agents and sellers will take you more seriously if you are working with a mortgage professional. In fact many agents will not show you homes unless you are pre-approved.
If you are asking the seller for any concessions they will treat your offer more seriously if you are pre-approved.
A mortgage professional can inform you of the different financing option available and the maximum amount you can finance for each before you start house hunting.
If you have a real estate agent you are working with ask the agent to recommend several mortgage people for you to interview. If you do not have an agent yet I suggest you interview at least 3 loan officers before deciding who to work with. If you do this before you find a home you will not be rushed. This is an important decision.
The mortgage industry is going through a lot changes, consulting with a professional on your mortgage options at the beginning of the process can save you lot a time, effort and money.
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