When it comes to getting a mortgage – whether it’s to buy your very first home, another home or refinance – there are some important rules to follow. I wanted to highlight a few things that seem like good ideas most any other time, but can in fact be bad when you are thinking of or in the process of getting a mortgage.
Whenever we talk with people who are thinking of buying or refinancing a home, we go over a list of “The Ten Commandments When Applying For a Mortgage” with them. Knowing these things to avoid doing while seeking a home loan can make the process less stressful and help ensure that you don’t inadvertently make a change that could eliminate you from being able to qualify and get your loan.
Times have changed and the days where real estate agents would show homes without a pre-approval are gone. You may find that an agent will take you out once if you call on a particular property, but most experienced real estate agents will ask you very early on, “Have you been pre-approved for financing?” Experience real estate agents know that this is the first step to a successful home buying process.
Whether you’re thinking about buying a home now or a year from now, the right time to visit with a mortgage professional about your financial situation and is as early as possible. Our objective is to make the home loan process and getting a mortgage as seamless as possible for you. There are some sure fire ways to make it more stressful and we would rather speak with you before you make some common mistakes that could make getting a mortgage more challenging.
Even within these three categories, it’s important to know that not all lenders have access to all of the same products and programs or have different policies that prohibit them from doing things that another lender could do for you as a borrower.
I often write about the things to do when you’re preparing for a mortgage and was recently reminded of the importance of pointing out the “DO NOT” do items. These are items that could prevent you from closing on your home, or best case scenario cause you additional paperwork and detail that you need to provide in order to gain a loan approval. Whether you’re a first time home buyer or an experienced home owner, this list is important for you because the rules of the mortgage game have changed in recent years. Knowing the rules and how to work inside them can make a big difference for you.
At today’s record low mortgage rates, you can finance home improvements or home repairs with an FHA 203K right along with your home purchase price at the time of your initial loan closing and know that you’ve already got those items financed and under control.
We try to make the pre-approval process a seamless one for you so that you don’t have to guess what’s next in the process. Once you’ve provided us with the necessary documentation, the time to complete pre-approval is short. We want you to be able to get out looking at houses as soon as you’re ready, but we also want to be sure that your pre-approval is valid and that you understand your loan options and the financial considerations of buying a home.
Whether you’re in the middle of the mortgage pre-approval process or if you haven’t yet started the home buying process; understanding the FHA 203K program in today’s real estate market can come in handy. A large number of the properties on the market today are bank owned or short sale properties where the seller may not entertain doing any repairs on the property. Being armed with all of your options for mortgage financing upfront will help you to be best prepared.
Whether you’re a first time home buyer or a home buyer who owns a home now or has in the past, your credit will impact what mortgage loan terms you are offered today and some simple things can take you from a, “not yet” to a simple yes, bring you into qualifying for programs you otherwise wouldn’t, or could save you .25-.50% in interest over a 30-year term. Yes folks, today, credit matters in a way it hasn’t in the past. If you pay attention, you can save thousands of dollars and maybe even a serious headache or two.
Watch this video for information on the upcoming First Time Home Buyer Class
MN First Time Home Buyer Class
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