Mar 2, 2021
Purchasing a home is one of the biggest financial steps you will make in your lifetime. The mortgage decision process can be confusing and complicated, here are 6 steps to creating ease within this process.
While browsing MLS and contacting your realtor may seem like a good place to start, it’s not. First contact a trusted mortgage expert so you know exactly where you stand and what you will qualify for. This ensures you will be working with someone who has your best interest at heart and can present you with a variety of mortgage options from an array of financial institutions.
The second step in this process is to work on a mortgage plan. Unless you can buy a home outright with cash you will need a mortgage to some degree. Mortgage financing can be a tricky thing to understand and is rarely straightforward. The best time to start planning your mortgage is at the beginning of the process of buying a property and will render the best overall results with the least amount of complications.
Mortgage planning helps you figure out what you can afford on paper, looks at your credit score, runs multiple financial outcomes unique to your specific scenario, calculates mortgage payments, and gives you a clear picture of how much money will be needed for a down payment and considers all your closing costs. You can also talk about which mortgage product you're interested in; terms, types, amortization options and features.
What you will qualify to borrow on paper doesn’t always mean you can truly afford these payments. You must always consider your lifestyle and how you manage your money. Understanding your cash flow is truly a key to financial success. Making a clear and honest budget that paints a picture of success, so you have enough funds to close your mortgage. Being house poor or feeling overwhelmed when trying to come up with funds at closing is never a good way to start your ownership of a new property.
If, at this point in time things are looking good and you feel confident to move forward the next step is a pre-approval. This is much more than just typing in some numbers on a form or calculator. This involves completing a mortgage application and submitting all the involved documents requested by your mortgage expert.
Looking at properties once you’ve been given the green light from your mortgage expert will make the experience fun, carefree and motivating for everyone involved including your realtor. Once you find your desired property you will work closely with your mortgage expert to arrange the appropriate financing in a short period of time. This is where being prepared really pays off.
As you have already collected and submitted many of the documents required during the pre-approval process, you will be set up for success. Keep in mind, you will need to remain flexible and willing to provide any additional documents required by your chosen lender.
Once you have a secured a lender approval and you have removed subjects on the purchase agreement, make a genuine effort to not change anything about your current financial situation until after you have moved into your new home. Quitting your job, new loans or financial obligations, large withdrawals from your bank account are all things that could put your mortgage in jeopardy. Put your life into a holding period until you take possession of your new home.
There Are The 6 Steps To Ensuring The Smoothest Home Purchase Possible:
Work with a professional mortgage expert
Put together a detailed mortgage plan
Figure out what you can afford
Get a pre-approval
Provide the necessary documents
Don’t change a thing about your financial situation until possession
If you would like to talk about your current situation and mortgage options that are currently available, we are available anytime for a phone call. Together we can figure out a plan to success and get you into your new home as stress-free as possible. We are here anytime; it would be a pleasure to work with you.
