UNDERSTANDING THE MORTGAGE PROCESS.
Does the thought of finding a lender and applying for a mortgage overwhelm you? If you’re like most people, you scroll endlessly online looking at homes, dreaming of making a move, but haven’t taken the leap of actually getting pre-approved and talking with a professional to determine what you can afford. It may be because you’re trying to save more… or don’t want your credit pulled… or just because you don’t think you can afford to buy a house.
I’m here to tell you that you don’t need to be intimidated by the thought of getting pre-approved or obtaining a mortgage! “Buying made easy” should always be the goal, and the process can be simple and stress-free if you have the right lender and agent by your side.
It also helps to know what’s coming at each stage of the process so you can be prepared to ask the right questions. Here is a step-by-step of the mortgage process:
1. Determine Your Budget.
Decide how much you want to pay monthly and how much you have to put towards a downpayment + closing costs. Remember to set aside a small emergency fund.
When determining your monthly budget, consider expenses you may not be paying now, such as water/sewer, trash, homeowners insurance, HOA fees, etc.Remember to be realistic. The last thing you want is to end up with more house than you can afford.
2. Get pre-approved & determine loan program best for you.
Getting pre-approved before you start house hunting is essential so that you don’t miss out on “the one” and also don’t get your hopes up looking at homes that you can’t afford.
Another benefit of getting pre-approved is understanding what loan program is right for you, which will depend on your financial goals and the programs available at the time (always ask about first time homebuyer programs!)
3. Compare & shop lenders.
Don’t be shy! This is VERY important in our current market, where rates are volatile and the highest they have been in decades.
Ask me (or your agent) what new programs they’ve heard about or lenders they know have the best rates, and ask family, friends, and co-workers who they used and had good experiences with In the past!
4. Commit to a lender & lock your rate.
This means you will formally “apply” with your lender of choice and provide them with any additional documents necessary. Once you go under contract, they will order the appraisal and start the loan processing and underwriting process.
Once you have committed to a lender, you can officially lock in your rate, depending on how far out settlement is.
Don’t hesitate to reach out if you have ANY questions about buying or selling or need a recommendation for a great lender. I’m here to hel