When you are looking into buying a house, the first thing you need to think about is your budget. Do you have enough saved up? Will the lender give you enough of a loan?
What is a loan based off of, anyway? Is it my income? My credit? Am I even qualified to get pre-qualified?
These are all questions that go through a homebuyer’s mind when they start the house-buying process. It can be a scary time with all of the unknowns, but there are plenty of ways to be prepared for this so you’re not jumping in blind.
YES you should get pre-qualified
The first step of looking for a home is to get pre-qualified. Good news; this is fairly simple to do and it it isn’t that hard of a process. Most of the prequalification process can be done over the phone or the internet with a lender or bank of your choice.
Even better news – Many times there is no cost involved! The three most important things you’ll need when you are getting pre-qualified is your income, debt, and assets. They will ask for current bank statements and will want to see that some money has stayed over the past few months. Because of this, it’s generally a good idea to refrain from making any big purchases until you are pretty much moved into your new place.
Working with the lender
At this point in the process, you can discuss your goals or any needs you have when you meet with your lender. The lenders are very knowledgeable and will be able to explain various mortgage options that are specific to you and your family. They will also be able to educate you on which type of loan may fit your situation the best.
Do your research when trying to find a good lender. Of course, there is money in it for them, but you’ll also want someone to walk you through this process in the most painless way as possible. They are the experts on this and can help you through the entire process.
Selecting a lender
While there are multiple options and multiple ways in which you can find lenders, there is one that typically comes to mind first for most looking for home lending options. Just about everyone at this point has seen the commercials and heard of Lending Tree. They are the leading online loan marketplace in the nation, and they make the process so harmless and easy.
Their service allows consumers to work with multiple lenders for various financial borrowing needs. Lending Tree basically sets their clients up to “shop” around for potential lenders. All in one online location, consumers can compare and save on loans that they need. This really simplifies the process and makes a lot more organized. It’s nice that someone else will be doing the dirty work for you in this stressful time.
Buying a house is a huge step. It can be even more stressful if you aren’t confident in the amount of money that needs to go into it. Knowing that there are real professionals out there, that actually do have your best interest in mind, hopefully, can help you relax a bit and focus on finding your dream home. 🙂
Sources:
Castle and Cook Mortgage. “6 Things Mortgage Lenders Consider Before Approving a Home Loan” Retrieved from: https://www.castlecookemortgage.com/blog/what-do-mortgage-lenders-look-for-when-approving-a-home-loan/. September 20, 2018.
Qualified Mortgage. “How much do mortgage lenders decide how much to lend?” Retrieved from: http://www.qualifiedmortgage.org/how-much-to-lend/. September 20, 2018.
Investopedia. “Pre-qualified vs. pre-approved: What’s the difference?” Retrieved from: https://www.investopedia.com/articles/basics/07/prequalified-approved.asp. September 20, 2018.
Lending Tree. “About Lending Tree” Retrieved from: https://www.lendingtree.com/press-room/about. September 20, 2018.
Quicken Loans “Our Mortgage Process” Retrieved from: https://www.quickenloans.com/about/our-mortgage-process?qlsource=nav#chat_close. September 20, 2018
