Securing a Mortgage that Works for You
You have started to look on the Internet for homes when, all of a sudden, you find the perfect one. You know that it is such a great deal that it will sell fast! This is when the problem you face hits you: you are not yet approved for a mortgage and the sellers will only accept offers from pre-approved loans. To avoid this situation here are four steps you will want to take in order to get your mortgage fast.
Finding the Right Mortgage Company
You will most likely have this loan for 30 years so it is important that you find the right one. You may want to consider looking locally at area banks and then begin reaching out to other companies. You can (and should) also do this on the Internet, which allows you to rate-shop without hurting your credit score. This search can take a few weeks so make sure you don’t wait to do this or you may make a poor decision due to time constraints.
Get a Letter
When making an offer, sellers will want to see that you have a pre-qualification letter. This letter just states you are approved for a certain amount. You can get this from any lender that you work with and it will only take a few days because they don’t always need to see your paperwork.
Getting Pre-approved
Depending on your situation this step can take anywhere from one week to several months. This pre-approval step requires you to send in your bank statements, proof of employment, and a credit check. The best situation is if you have a stable job and no debt because this results in an easy pre-approval process. Sellers find this letter to be better than the pre-qualification letter because they know that the lender has taken the time to know if you can afford that amount.
Final Step
Once you have your letter and the seller accepts your offer you will need to get an appraiser to look at the home. This person will be able to verify that the home you want to purchase is equivalent to the amount you are asking for. This can take a few weeks depending on the seller and appraiser’s schedule but once it is done the bank will approve your loan and you will be able to close.
Following these steps to getting a mortgage that works for you can take time, but is a very important process. Make sure you are prepared for the time it will take and start the pre-approval process early so you don’t end up missing out on the perfect home.