Be Prepared to get a Mortgage
Champion the Process
If you are getting prepared to buy a house,
You have come to the right place.
It is my job as your mortgage consultant to consult you on any potential risks and pitfalls and make you aware of what the process will be.
Buying a home is a process. There are probably 16 steps that take place. If you do not have your ducks in a row the process may become stressful if problems arise or emotions enter into the picture. Any good realtor will not work with you unless you are properly pre-qualified. As a rule they will not waste their time and gas if they don't know that you are actually in a position to go buy the home.
The 16 Steps to Purchasing a Home and Getting a Mortgage
Similarly, when refinancing, it is important you are dealing with a reputable lending institution and / loan originator. Quite often internet lenders publish ficticious rates ot large companies don't provide the one on one approach that customers want.
Are you pre-qualified or pre-approved for a loan?
Before you begin to shop for a new home, we should discuss how much you can afford and where you would like your payment to be. This will give you piece of mind and put you in a better position as a buyer. That’s when it is important to understand the distinction between being pre-qualified for a loan and pre-approved for a loan.
To get pre-qualified for a mortgage loan, Go to the loan Application link on this Web-Site
I will collect information about your credit, income, and assets. We’ll look at your credit profile and assess goals for a down payment and get an idea of the different loan programs that would work for you. I will issue you a pre-qualification letter indicating the amount you are pre-qualified to borrow. This is something that your realtor will use to show any potential listing agents to demonstrate that you have done your homework.
It is important to understand that a pre-qualification letter is just an estimate of what you are eligible to borrow, not a commitment to lend. Getting pre-approved for a mortgage loan gives you competitive advantage when the time comes to bid on a home because you have been approved for a loan for a specified amount.
To get pre-approved, you will complete a mortgage application and provide me with various loan information verifying your employment, assets and financial status such as W-2 forms, bank records and pay-stubs. We’ll review your mortgage options and submit your application to the lender that best meets your needs. Once the application process is complete you will receive a committment letter indicating the amount your lender is willing to lend you for your home.
It is better to deal with the pre-approval process as soon as you can. I have prepared a first time homebuyer email series that is the perfect way to start understanding what needs to be done. Please go to Video
Additionally, I have created a mortgage process series that details what goes on after you fill out the paperwork and we submit your loan to the bank. It is my job to get you the best interest rate and deliver the absolute best service and this is one way that I do it.
More: 9 Steps to Ownership (video)
When to Get Qualified
How Much Can You Afford
Debt to Income Ratios
401K for Downpayment
Gift as Down Payment
If you are out there searching for a foreclosure deal or a short sale deal you should be ready for a longer and more difficult process getting your offer accepted. Typically bank owned properties have a longer checklist to get the offer accepted. They wish to see proof of assets and sometimes even a loan commitment letter before they will even look at the offer. This is why many realtors don't get to excited about making an offer on a bank owned property.
Similarly short sales can be just as difficult to make an offer on. The process of making an offer on a short can take as long as one to three months. And if another offer comes along, a better offer or even a cash offer, your FHA 96.5% offer will get pushed out.
If you go out there looking to get a great deal on a foreclosure or a short sale , be prepared to be patient.