You have decided it is time to sell your home. It is a big step with some major decisions you have to make. When it comes time for you to apply for a new home loan, there are a lot of things to add to your to-do list. But what exactly are they? There are three things you need to do before getting a mortgage. Read on to find out these three steps!
Step 1: Get Pre-Qualified
The first step to getting a mortgage is to get pre-qualified. This basically means that you are able to get a mortgage in the future. To do this, you will need to meet with a lender and provide information about your assets, income, and liabilities. Based on this information, your lender will estimate how much money you can afford to borrow. Because this is just the first step, it is very informal and nothing is verified. This is not a pre-approval. The lender is simply telling you how much money they are willing to loan you. This process with give you an idea of how much house you can afford.
Step 2: Pre-Approval
The pre-approval process is a little more formal than the pre-qualification process. During this step, the lender will check your credit, verify your financial and employment information, and confirm that you can actually qualify for a mortgage. A pre-approval is not binding but is a lender telling you they will lend you this amount of money. A letter of pre-approval can help strengthen an offer on a property because it shows you can actually purchase the home.
Step 3: Choosing a Lender
Mortgage brokers, banks, and real estate agents are all popular sources of mortgages. Before choosing a lender you want to go with, you should know some of the pros and cons of each source. A mortgage broker is responsible for helping borrowers obtain loans better than any other source. They have access to a number of different mortgage providers and shop on the mortgage market on behalf of their clients. Brokers can be valuable if you have damaged or low credit. These brokers do have a fee attached to their service to make sure you look into it before using their service. Banks are trusted source of mortgage funding. If your local bank offers good interest rates and attractive terms, there is no reason not to take the loan. If they don’t, feel free to shop around the other banks and credit unions in the area. Some real estate agents can even help you find a lender. Ask your real estate agent for recommendations on lenders they have used in the past,
Getting a mortgage doesn’t have to be hard or a long process. With these three steps, you will be well on your way to getting a mortgage and your dream home!
Getting a Mortgage with Simply Referable
There are any number of obscure and strange real estate laws in Maryland. The small team of realtors at Simply Referable will be happy to help guide you through the thicket. Each of our team members has an area of expertise, and we strive to form lasting bonds with each of our clients. We want to be your go-to realtors every time you or a friend wants to make a change. With local experience, our realtors can help you choose a house that is just the right fit for your family, now and forever. Contact us online or give us a call at 410-983-9045.