If you missed Part 1 – Available Mortgage Programs, Part 2 – Understanding the Payment or Part 3 – The Loan Process, be sure to read those first.
Many fall in love with the idea of buying a new home. Unfortunately, that euphoric feeling causes people to get details and plans mixed up. Buying a home is a wonderful investment, but it should be approached with the right strategy. BEFORE finding a home, and falling madly in love with a neighborhood, people should first talk to a mortgage loan officer to get pre-qualified.
It’s Best for the Buyer
Getting pre-qualified gives the buyer a chance to find out how much home they can afford. A competent loan officer will tell the buyer not only the principal and interest payments per month, but also the estimated taxes, insurance and mortgage insurance monthly amounts. This gives the borrower a true number to work with in order to decide how much they are comfortable paying.
It’s Best for the Realtor
Once the buyer is pre-qualified they can contact a realtor and start looking for a home. Realtors have the ability to search for a home based on a number of criteria. Some of the items can be number of bedrooms, number of baths, square footage, location and total price. By having a maximum price amount the realtor can eliminate homes outside of the buyer’s budget.
It’s Best for the Loan Officer
Getting pre-qualified allows the loan officer to decide on the best loan for the borrower and ensures that the borrower will be approved for the loan. Too many times a potential home buyer will find a house they really like and ask a mortgage company to try and qualify them for the home. The problem is that the home is too expensive for them and they blame the loan officer for not being able to secure a loan. It is much easier for the loan officer to get a prequalified applicant approved vs someone who just has their heart set on one house.
View additional first time home buyer information from our main site. Also, you may want to check out our detailed loan process page.
Contact us below or apply online to see if you qualify for a first time home buyer program including conventional financing, FHA, FHA 203k, VA and USDA Rural Housing loans!
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