How to Prepare for a Home Mortgage

A lot goes into buying a home—from establishing what you’re looking for to finding the right house and making sure it checks out properly, the process can take a bit of time. However, unless you’re one of those rare people who is able to pay cash for a home, securing a home mortgage will need to be one of the most important steps in the process.

While having your finances and income scrutinized by a lender may seem somewhat daunting, getting approved for a home loan doesn’t have to be a confusing, difficult task. In fact, the trick to securing a great mortgage is to make sure you’re educated and prepared when the buying process begins.

ORGANIZE YOUR FINANCES

As much as we may hate them, our credit reports still represent an ongoing summary of how well our finances are managed. With that being said, it’s important to know exactly what yours says about your history before you apply for a loan, especially since they will be used to determine your interest rate and any other loan terms involved in the deal. To avoid surprises, make a point to have a thorough knowledge of what’s contained within yours before speaking with a lender.

LEARN ABOUT THE MORTGAGE INDUSTRY

Not all loans are created equal, so finding the right one will be important when it comes to establishing your budget. To help, take some time to read up on the state of the industry before you start shopping and consider utilizing the advice of an experienced Realtor who can recommend a few good lenders to speak with.

GAIN PRE-APPROVAL

While pre-approval is not completely necessary when placing a bid upon a home, it can make the difference between your offer being accepted or being passed over. If you will, take a moment to imagine this situation – A seller gets two identical offers on their property, yet only one comes from a buyer who has been pre-approved. Generally speaking, the seller will always defer to the buyer who has supporting documents.

KNOW YOUR WANTS AND NEEDS

Part of making yourself familiar with the real estate market is taking stock of what you want in a home. If you come prepared with a set list of items that you simply must have, then you’ll have a better idea about what kind of mortgage will fit with your budget.

UNDERSTAND WHAT REAL ESTATE AGENTS DO

Real estate agents represent buyers, as well as sellers, so they tend to be familiar with the mortgage process on both ends and can usually put you in touch with the right qualified professionals. An agent’s job is to offer as much guidance as you may need so that the process of purchasing a home doesn’t feel so overwhelming, which means they can not only help you find a reputable lender, but ease your mind in the process.

Whether you’re in the market for your first home or a new home, I’d love to help you from start to finish. Please contact me.

Pam Evans | Hello Pam Evans Real Estate | www.HelloPamEvans.com | 678-778-6551