Getting a home loan doesn’t have to be complicated in 2018. Yes, you need all your ducks in a row because you do want to get approved. Finding a home and getting it inspected, etc. is part of the process, too. That being said, there are all kinds of companies moving people through the mortgage application process quickly and painlessly. You can apply for a home loan in your pajamas if you wanted, and get that pre-approval in the books.
You know the advice is to get the pre-approval first, and then you can look at listings. Doing things backwards can result in disappointment. You don’t want to be looking at properties that are too expensive, given the ratio that mortgage companies look for. You technically want to find a home with a mortgage that is going to be no more than 25 percent of your income.
Granted, you have options when it comes to mortgages. Think about what you want, too, not just the qualifications. In other words, think about whether or not you want a 15 year or a 30 year mortgage. Do you want to pay off your home sooner, or do you want to get the conventional 30 year mortgage? If you have a preference, that is obviously going to change the payment amount each month that you owe.
Choosing the mortgage company and the mortgage product you want can help lead you to the house that you can afford. It’s not just about what the company says but about you knowing your own finances. Once you work on getting a home loan pre-approved, you can then decide to move forward and find the home of your dreams. After you collect listings and go through the process of finding a home, you can then finalize the loan.
Being pre-approved for a certain amount isn’t just about you looking at the right listings. It’s also about showing that you have the approval in the works. It makes you a likely buyer, and both agents and sellers are going to take you more seriously. You will be taken seriously no doubt anyway, but the pre-approval helps. You really want to have that all lined up and ready to go.
It is part of the home loan approval process. Again, if you start late, you’re likely going to be a little disorganized. Then again, it doesn’t take much to get a pre-approval these days. Yet remember, it’s about knowing how much home you can afford. So it pays to get everything taken care of in order.
Are you ready to find the right mortgage company? That’s part of the process, too. It’s not just filling out an application. You need to know what mortgage company you’re going to apply with. You also need to have your credit report all ready to go. What’s your credit score like? How much of a down payment are you going to put down? Be fully prepared to buy a home when you fill out a mortgage application.