Are you ready to buy a home? Buying a home is one of the most significant financial decisions you'll make in your lifetime. If you're considering purchasing a home in the near future, learn about best practices when applying for a mortgage.
I’m here to guide you through every step of the process. Let me know if you have any questions at all.
1.Pre-Approval.The lender has checked and reviewed the potential buyer's financial situation and determines how much can be approved to a specific loan amount.
2. Fixed-rate Mortgage. The definition of a fixed-rate mortgage is simply a mortgage with a set interest rate that does not change over the life of the loan. There’s a reason why fixed-rate mortgages are the most popular type of loan – it offers the borrower consistent monthly payments with no surprises. That predictability and stability can be pretty attractive for those who like to stick to a rigid budget.
3.Appraisal-Lenders typically require a professional, independent appraisal of the home you want to buy or refinance. This ensures the value of the property meets the loan guidelines and satisfies all lender requirements.
4.Earnest money-it is put down before closing on a house to show you’re serious about purchasing.
5.Escrow-ensures buyers and sellers in the real estate process are protected. As a homeowner, it ensures you will be able to pay for your property taxes and insurance. As a seller, it provides a layer of protection for the buyer’s deposit and helps facilitate the technicalities of the transfer of property.