So, you’ve decided to finance a home. Securing a mortgage loan can be a fairly complicated, potentially frustrating endeavor. But by doing the proper preparation and taking a logical approach to the process, you can save yourself the headaches and come away with the best loan for your needs.
Steps to finding a lender – Save For Your Down Payment
Down payments typically range from 3 to 20% of the sale price, (though they run 25% and up for foreign buyers), and are an important factor in securing an attractive loan, as higher down payments qualify borrowers for better terms. See our SEVEN WAYS TO SAVE FOR A DOWN PAYMENT for valuable tips on how to conquer this first hurdle.
Steps to finding a lender – Get Your Documents in Order
To be pre-approved for a mortgage, you’ll need all your financial documents at hand, including tax returns, pay stubs, bank statements, credit card statements, student and auto loans, etc. It’s important to remember that getting pre-approved doesn’t mean you’re guaranteed to get the loan, as lenders may decide to look more deeply at your finances at any time. Therefore, before you begin the process, make sure there are no red flags lurking in the recesses of your financial history.
Steps to finding a lender – Get Pre-Approved
Once you have a suitable down payment and all your financial statements ready, you can start applying for pre-approvals. Just as pre-approval helps the seller identify you as a serious, qualified contender, applying for multiple pre-approvals helps you identify the lender who is best qualified to meet your needs. There are many types of loans, including conventional, FHA, VA, and foreign national loans, and both private institutions and banks to choose from. It can seem complicated, but the Authentic Real Estate Team can help steer you toward the lenders who will best fit your needs.
As part of our comprehensive approach to home buying, we at Authentic Real Estate Team are here to help you secure financing that fits you. From providing financial advice, to providing you access to our extensive network of lenders, we make sure you get the loan that will get you the home.