The mortgage loan process involves dealing with hundreds of thousands of dollars, so it’s no wonder that the process can be rather complicated. Unfortunately, at each stage, what you don’t know CAN hurt you. It’s important you have a financial partner capable of offering you accurate information and support from the first step until your home purchase is complete.
By weighing your income, debts, and other personal information, a mortgage consultant can give you a general idea of how much you can borrow. This will help you decide whether now is the best time to buy a home, and which type of financing is best for your plans. Unfortunately, a pre-qualification is not as precise as a pre-approval, so many real estate agents will ask you to take additional steps before they begin to show you houses.
Real estate agents and sellers strongly prefer working with homebuyers who’ve gotten pre-approval from a lender. The bank will review your earnings, debts, and credit information to determine how much financing you’re likely to receive, as well as which loan programs you’re eligible for and the interest rates available. Upon pre-approval, real estate agents will be happy to take you to see available properties, and sellers will be more likely to take your offers seriously. In situations where there are competing offers for a home, sellers often give preference to pre-approved buyers, even when their offers are lower.
During pre-approval, your Midland Mortgage Corporation mortgage counselor will give you tips for securing better rates or financial products, if needed. You will also learn how to protect your access to financing during closing.
Your pre-approved financing is contingent upon your continuing qualification for financing and the condition and value of the property you wish to buy. Some homebuyers secure a loan and immediately make decisions that put their financing at risk – like changing jobs or applying for credit cards. Others put in offers on homes that are in too poor condition for a mortgage company to be able to arrange financing at all. The closing period allows time for the lender to double-check the value of the home and the right of the seller to transfer ownership of the property, and to reassess your financial situation.
Midland Mortgage Corporation can help keep you safe from heartbreak throughout the mortgage process. Let our experienced mortgage professionals lead you along the path to home ownership. Check out special considerations and loan programs for first time buyers.