In the 15+ years I've been a mortgage loan officer one of the things I see entirely too often is people jumping into the home buying arena completely unprepared. Inevitably things end poorly, and it just doesn't need to be that way. Think of it this way, trying to bake a cake without the proper ingredients is going to be difficult right? You wouldn't start baking unless you had what you needed, so why would you get involved in a mortgage transaction for hundreds of thousands of dollars unprepared?
The answer is too much emotion and not enough guidance. So many people just jump right in without talking to the proper steps to prepare themselves and guard against issues. This article is going to give you the 3 steps you need to take to have a successful, smooth and stress-free mortgage transaction.
Step One: Call your local lender
One of the biggest mistakes I see people make is when they think that just because they have a great credit score they can get a mortgage. Or, their salary is insanely high, so that's why they can get a mortgage. Credit and income are only a part of the mortgage review and plenty of people with high salaries and 800 scores don't qualify for a mortgage loan. The first thing you need to do regardless of your score or income is call a local mortgage professional for a consultation. During your consultation your lender will review your entire credit profile to determine what you qualify for and how much you qualify for. You'll leave your interview knowing what price range you should be looking in, and, what your estimated monthly payment will be. Knowing what you're qualified for and that this payment is comfortable within your budget is the first and most important step of the process.
Step Two: Call a local Realtor
Too many people make this step one and this is where it all falls apart. There's nothing worse than finding a house you are absolutely in love with, only to find out you can't qualify for it. Don't do that to yourselves! AFTER your meeting with your lender, then contact a realtor so they can show you homes that are in the price range you are qualified for.
Step Three: Call your local lender AGAIN
You successfully completed step one. You went house hunting with your Realtor in step two. And now, you've found the perfect home and you want to make an offer on it. What you do now is step three and call your lender again and give them the address of the home you wish to write a contract on. They can then prepare a scenario for you showing you a near accurate payment for that house. This is super important because the cost for taxes and insurance vary widely from house to house. You don't want to write a contract on a house only to find out later that the property taxes are so high your monthly payment is now unaffordable. Once your lender runs the updated figures for you if you're happy with the figures and those figures are within your loan qualification paraments, then sign the contract.
I hope this information has been helpful. It's really paramount to follow these three steps. If you do, you'll enjoy a super-fast and stress-free closing.
If you're thinking about getting a mortgage and have questions, feel free to contact me. I'd be happy to help!
Contact Wendy 7 days a week for more information:
Phone or Text: 321-794-5626
Facebook Messenger: @aloaninthesun