Mortgage Information
With all the excitement and activity of buying a new home, home buyers often relegate their home financing to later in the process—often in the few days after they've signed a purchase contract.
But if you use that approach, you'll probably find yourself scurrying to get mortgage financing. You may not carefully consider important financial options, you're likely to rush your decisions, and you may be left with a mortgage that doesn't fit your financial goals.
1. Get a loan preapproval
You should line up your home financing even before you find a home. You can do that with a loan preapproval.
- You'll know ahead of time how much you can borrow, avoiding wasted time looking in the wrong price range.
- You can show real estate agents you're ready and able to buy—setting you apart from the more casual shoppers.
- You can show sellers you're able to close on the deal quickly—making your purchase bid stronger.
- You'll avoid the pressure of having to make a rushed mortgage decision immediately after you have a purchase contract that gives you only a short period to secure an approval.
- You can find out and address any possible qualification problems ahead of time.
- Your closing date can be set as soon as your seller is ready.
A preapproval requires a credit check and a complete mortgage application. You'll just have to add the property details after you have a signed purchase contract.
So not only will your home buying experience go much more smoothly if you handle your financing ahead of time, but you're more likely to find the right mortgage features that will fit with your financial goals. With a loan preapproval, you'll be able to move quickly and confidently when you find the right home.
2. Become prequalified for a mortgage
Even if you're not ready to apply for a mortgage, you're probably curious about how much home you can afford. To find out, simply request a mortgage prequalification, such as the free service provided from your real estate agent. With some basic financial information, a lender can determine a price range that fits your finances. No credit check is involved, but you'll get the expertise of a mortgage specialist to help you understand your mortgage options.
Take the next step
Avoid the mad rush to apply after you've signed a purchase contract. Instead, start off by contacting us to discuss getting a Priority Buyer preapproval or becoming prequalified.