Financing pertains exclusively to buyers although some of the information provided below does apply to refinancing an existing home or property. The first step in buying a home or property is to determine how much you can afford what you want to spend and what is the financing going to cost you. There is a difference between what you can afford and what you want to spend. The amount you want to spend should include the deduction of other expenses from day to day life, hobbies and future changes to family status. If you are planning on children or have elderly parents that may be in the future, make sure to consider those expenses and you should always leave yourself some breathing room so you're not house poor.
Many buyers are intimidated to talk to a mortgage specialist. This is understandable and not the first task considered when looking at buying a home however it is important to get started early.
Real estate agents can refer you to highly skilled and professional mortgage lenders they have done business with, trust and can deliver an on-time closing. Real estate agents do not get referral bonuses or any monetary exchange for connecting them to buyers however they do have an interest to utilize mortgage specialists that can provide valuable customers service and have a good reputation with clients. There are many lenders a mortgage specialist can use and should be able to provide you with options and a clear explanation of each loan offering.
GETTING QUALIFIED & APPROVED
Pre-approval will allow you to determine your price range and the financial obligation. An approval for a specific amount does not necessarily mean that is your price range. Consider hobbies, future changes or additions to your family that may impact financial stability and cash flow. When you are ready to provide a written offer, your pre-approval letter will need to accompany the offer.. When you are ready to provide a written offer, your pre-approval letter will need to accompany the offer. Lenders will have different programs and offerings that will affect the interest rate and down payment.