Are you ready to buy a home?
One of the first things you should do is find a home loan specialist. Not just any home loan specialist, but one that understands what it takes to lock down a great rate.
That requires a little bit of shopping and research on your part. Read these tips to make sure that you find the right lender to work with and you get the loan approved.
1. Get Referrals
You want to work with a home loan specialist who has the experience and knowledge to walk you through the steps of getting a mortgage.
You’ll want to get a few names from your real estate agent and network. There are plenty of good lenders out there, and you want to start with just a few names.
2. Know Your Financials
Do you know what your credit score is? Do you know how much you can afford in monthly payments? The answers to these questions serve as your starting point.
Your credit score will determine your ability to get a home loan and the interest rate on the loan. If your credit score is low, you’ll want to take the time to clean it up before you start shopping for a loan.
3. Look at the Entire Package
When you’re shopping for loans, it’s tempting to go with the lender that offers the lowest interest rate. Sometimes, it’s not worth a rock-bottom interest rate if the customer service is horrible.
There are a lot of horror stories from customers of specific banks. That can cost you in time and aggravation.
You want to work with mortgage educators who can teach you about all aspects of a home loan and guide you in making a smart decision.
4. Get Preapproved
Before you start shopping for a home, you should get preapproved for a home loan. This will show sellers that your offer is a serious one.
In a competitive market, that might be enough to convince a seller to go with your offer as opposed to someone else’s offer.
5. Don’t Make Any Big Life Changes
Just because you’re preapproved for a home loan doesn’t mean that it’s a sure thing. There have been cases where deals fall apart at closing because a buyer couldn’t secure a loan.
Banks rely on the information that you provided to make a decision to approve your loan. They look at your job history, income, and credit score to determine if you can pay back your loan.
Any sudden changes can impact your ability to close the deal. In other words, don’t change jobs, and don’t take out any new credit cards before the deal closes.
Finding the Right Home Loan Specialist
It’s a great time to buy a home. It’s a huge step and it can be incredibly stressful. However, working with a home loan specialist who can serve as a guide can bring a sigh of relief.
You can rely on them to give you expert advice and help you get the best home loan possible.
Ready for more tips? Head over to the Financial section of this site.