Pre-Qualification vs Pre-Approval
While a pre-qualification can show that you’re capable of purchasing a home up to a certain dollar amount, a pre-approval shows that your lender has all of the information needed to approve you for a loan. Another advantage to getting a pre-approval is that it gets the document gathering and question answering with the lender out of the way for the most part. That way once you’re under contract you can focus on getting things set up to move into your new home!
Types of Mortgages
Fixed Rate – Interest rate is locked for the life of the loan. Adjustable Rate – Rate may change over the life of your loan. Interest Only – All of the interest is paid up front until a certain point when the total is due.
Apply for a Loan
This is step one and it’s never too early. The application process can be lengthy and you’ll need to gather lots of documents and information for your lender, so start now! They’ll ask for documents like paystubs, tax filing documents, bank statements and information about other loans and assets.
Documents
It’s very important to get all the requested documents to your lender in a timely manner. This is one of the biggest reasons why closings are delayed and buyers default on the contract.
The Right Lender for YOU
Choosing a reputable and trustworthy lender is one of the most important decisions you will make in this process. While talking with a lender is step one, the lender you engage in step one doesn’t have to be who you end up using. You can shop lenders and compare rates, fees and timelines. We’d also encourage you to check references and reviews online.
Lender Recommendations
