Understanding the mortgage process greatly simplifies buying a home.
- Choose an experienced lender.
- Complete the Buyer’s Worksheet.
- Ask a lot of questions.
- Get pre-approved.
Understanding the mortgage process greatly simplifies buying a home.
The first step in the purchase process is to identify the right person to work with. Read How do I find a good lender? Find someone who is experienced and can meet timelines to help you avoid last minute surprises and delays. You don’t want to go into a closing and find that the interest rate, the type of loan, or the loan terms are different than what you had expected.
During the pre-approval process you should be asking a lot of questions. Having the completed Buyer’s Worksheet will make it easier for your lender to give you good feedback and advice. Which is the best loan for me? will help you understand the many different loan types and terms. You will want to review the multiple options you have in structuring your purchase. For example, if you currently own a home you may need advice on how to buy your new home before your old one is sold. If you are planning to spend money to remodel your new home, you may want to find a loan that requires a minimal down payment. If you are buying investment property you may be looking at a ‘reverse exchange’ and will need to understand how to make that happen so you don’t lose the tax benefits of the exchange.
When buying real estate you need to be pre-approved for the mortgage. The pre-approval will define the limits of your purchase, and the pre-approval letter from your lender will put you in a stronger position when you negotiate your purchase price. How do I get pre-approved? and What loan will I qualify for? will explain the process.
We always welcome your questions; contact us anytime by phone or e-mail.
