Home loans have a lot of moving parts, and all of those parts can seem like a lot. Fortunately, getting a mortgage doesn’t have to be a headache and the process can be far simpler than it may seem on paper. With that said, let’s take a look at simplifying the loan process.
Steps To The Application Process
The first steps in the mortgage process is, of course, applying for a mortgage. The application process, while financially heavy with information, is fairly straightforward and where most of your legwork as a borrower comes in. At this stage, make sure you have all of your financial records from at least the last couple of years available and be prepared to provide financials even further back.
Based on your application and the information you’ve provided, you’ll likely be pre-qualified for a mortgage from your bank or lender. This pre-qualification step is huge as it gives you an idea for how much money a lender is willing to offer. As a result, it also shows how big of a risk a lender is willing to take on you as a borrower.
How Mortgages Are Determined
Once the pre-qualification process has taken place, you’ll likely be offered an interest rate or a rate window. Many local banks and smaller lenders will actually shop much larger financiers on your behalf to find the best interest rate available for your given mortgage product.
Getting Your Funds in Order
If you’ve gone through the processes we’ve already outlined, then go ahead and get your funds in order for your down payment and closing costs. If you already know what you’re pre-qualified for, then calculating your down payment should be a breeze but make sure that you’ve got some extra cash on hand to pay any necessary closing costs.
Down payment and closing costs are two crucial pieces of the mortgage puzzle many first-time buyers neglect to consider (or aren’t aware of) going into the mortgage process. Do some research and understand what down payment will be required for your mortgage product and what typical closing costs can be in your local area.
Professionals in the real estate business are your go-to resources for expert advice and should not be overlooked for quality information. Attorneys, accountants, and personal financial advisors can also offer valuable insights into the legal and financial ramifications of buying a new home, so don’t discount their expertise in making your decision to buy.
Speaking to a loan officer is also a great value-added resource to the lending process and getting to know that person can potentially save you money and give you extremely worthwhile advice. Tidewater Mortgage Services, Inc. has over 20 years of experience and loan officers available to help you find the mortgage solution right for you.
If you’re interested in getting pre-qualified simply fill out our online application and get started on your journey to home ownership!