If your credit is fine or after getting your credit in order, the next step is to get pre-approved for a mortgage so you can see how much of a home you will qualify for. Do not assume you will qualify for a loan or qualify for the amount you are considering applying for. There are many lending guidelines as to how different forms of income and debts are calculated and you may qualify for less than you think. This is why it is so important to get pre-approved beforehand. I can't tell you how many buyers I have worked with who told me they could easily afford the homes they were looking at in a certain price range only to find out after getting pre-approved that they qualified for much much less. Finding the best mortgage deal is made even more complicated by the fact that the mortgage rates change daily, or even several times in a single day. One can get a good mortgage deal from a mortgage broker, a bank, or a mortgage banker. It’s up to the buyer, depending on the situation. When shopping for a loan remember these words. "An interest rate is only as good as the check delivered to the closing". Shopping merely by rate can be a terrible decision. Yes, you need to get a competitive rate but many times these low rate discount mortgage companies do not have the experience or the staff to get a loan done in time or to even get it approved. Also, many times a low rate carries higher closing costs on the back end that you are not aware of. Lenders are only required to disclose an "estimate" of costs to you when you apply. Don't risk your home purchase to a poor lending choice. As fishermen say, when you bottom fish, you snag weeds. To find the best mortgage professional to guide you through the process of buying a home, seek advice from real estate agents, colleagues, or friends. Banks are generally known for having the fewest mortgage options because their products are tailor-made to suit the bank’s interests. However, they can also sometimes be more flexible. For instance, if the buyer owns other substantial
105
Powered by FlippingBook