Where to Begin the Loan Application Process

Now that you’ve decided to buy a new home where do you start after you’ve found a real estate agent? The answer is simple, home loan financing. With the surplus of home on the market, finding a new home will be the easiest task at hand. As your agent showcases a wealth of dream of homes, it’s the mortgage you should focus your efforts on. Not to mention, it will save you the broken heart of finding that dream home that you do not qualify.

Pre-qualification Regardless if you use a mortgage broker or banker, he or she can administer an easy verbal prequalification during the loan application approval process in less than twenty minutes. If you can spare the time, a comprehensive prequalification can be completed in about 5 days. With the pre-qualification, a consumer can target their home search on the correct price range and alleviate any wasted time. It allows the mortgage shopper to compete with other contenders.

Moreover, most sellers prefer qualified homebuyers opposed to unqualified offers. Plus, getting a jump start on the loan application process with a pre-qualification may leverage the negotiating power with a seller. Relevantly, it can make a consumer a cash buyer.

Mortgage loan application process tip: The mortgage loan of home that you qualify can determine: the down payment, the credit ability to qualify for a loan and closing costs.

If you don’t already own property, your down payment is limited to the money you have saved. A current homeowner has the availability of equity from the sale of their home to rely on. While putting down twenty percent on a home is ideal to qualify for the lowest interest rate possible, it is passé in the mortgage industry. Today there are a plethora of home loans that are available as little as three percent.