Financing Your Future
We know that buying a home will be the largest investment you make in your lifetime, which is why our agents at Sands Realty encourage clients to seriously evaluate how much they can spend on a home, which goes in tandem with the monthly mortgage payments they can afford.
The basic steps for financing your home from start to finish includes:
Apply FOR YOUR LOAN
During the application process, a lender will review your credit report and your personal finances (income, assets, and debt ratios) to find out how much your financially able to borrow. When shopping for the best lender – from mortgage bankers to commercial banks or credit unions – to start this process, we advise to choose wisely. You’re pledging your home as collateral to that lender, so don’t just go with advertised mortgage rates from Internet lenders and big banks. Dig deeper into your options to consider local, independent mortgage brokers as well.
It’s this step when your lender should help you understand financing options, like rates and duration. Buyers typically put a down payment of 20 percent of the home’s sale price and choose to pay off their mortgage over a period of 15 or 30 years at a variety of interest rates.
Pre-Qualification & Pre-Approval
We recommend that you always go into the contract negotiation phase with either a pre-qualified or pre-approval letter in hand. The pre-qualified letter is from your lender stating that you are pre-qualified to purchase a home at a specific address for a specific dollar amount. And when you submit this letter with your offer, sellers take you more seriously. A pre-approval letter is even stronger because it shows the seller all that a pre-qualified letter does, with the addition of an underwriting review, which confirms that you are qualified to purchase the home.
This step will require patience, but should be painless if you’ve been diligent and upfront with your lender from the beginning. During this underwriting process, you’ll have to answer questions and provide paperwork that supports your finances as your lender sifts through the many government regulations. Once all of this checks out, you’ll be approved to close on your home.
WANT TO LEARN MORE?
We’re here for you. If you’re ready to buy, sell or build a home, call Sands Companies now at 843.839.4634 and one of top agents can sit down and discuss the best plan for you. Alternatively, complete the contact form and a Sands representative will be in touch with you within 24 hours. We look forward to hearing from you!