Finding the Right Mortgage for You
You want to make the leap towards finding your perfect home. However, you know you need to make a number of smart decisions when settling on your home. One part of this, and a large part of avoiding regret, is in securing the correct loan. Here are four steps you can do to help you get the right mortgage in a timely manner.
Do Your Homework
It is important that you do your homework and find the perfect mortgage for you and your situation; you will have this mortgage for 30 years in some cases. This is a considerably long time, especially if you do not choose the right mortgage from the beginning. Starting the process locally at area banks can be helpful but you should also look into online sites, which allow you to shop for different rates without hurting your credit score. This process of researching lenders can take some time, so you want to make sure you start the process early.
Getting the Information
While you are searching for the right mortgage make sure you ask for a pre-qualification letter. This letter is what sellers want to see to know that you will be able to afford their home. It does not take long to get a pre-qualification letter, and you can get secure one from any lender, as most lenders don’t make you submit any paperwork.
The Pre-approval Process
This pre-approval process can take some time depending on your situation. If you have minimal (or zero) debt along with a steady job, get pre-approved can take as little as a week. This is the time when you will send in plenty of paperwork – including bank statements and your salary – and lenders will run your credit score. Getting this letter is more reliable than a pre-qualification letter, so sellers will take you more seriously once you get it.
The Last Thing to Do
Once the seller accepts your offer you will need to get an appraiser into the home. This person will verify to the lender that you are purchasing a home that is valued at about the same amount as your loan. Once this is done, the lender will be able to finally approve your loan and you will be able to close on the home.
Finding the right mortgage for you is important, even if it does take some time. Make sure you prepare for this pre-approval process ahead of time so it does not delay or hurt you in the end resulting in you losing out on the home of your dreams.