If you’re new to homebuying, the process can seem intimidating. There are a number of facets to it, and there’s a lot to think about. The beginning of the process, however, is the most important. In fact, it’s what you need to do before you do anything else: get approved for a loan. Home sellers and real estate agents won’t take you seriously unless you have approval in writing. Therefore, you need to find the right lender, and then of course meet with them. This meeting doesn’t have to make you nervous if you’re prepared. Here’s the best way to go about it.
Bring the Required Materials
You’ll need a few personal documents to verify your identity, your employment, possibly your employment history, your finance history, and your tax history. So of course, this means:
- Driver’s license
- Social security card
- Pay stub
- Bank statements
- Credit card statements
- Any tax returns you have
Ask the Right Questions
You’ll no doubt be curious about several things in securing the loan. It’s important to focus on the most relevant issues to you. Ask them which type of loan will be best for you. You also need to know what the interest rate is, as well as the annual percentage rate (APR), and you may need to additional questions if your loan is adjustable. Origination fees is another important topic, and you’ll need to know about discount points. Ask about the loan estimate, and if there is a prepayment penalty. You also want to be sure the lender can handle its own underwriting, and if they can guarantee on-time closings. You surely want to know if they can approve loans in-house. Finally, you need to know what all the costs are.
Listen to All the Options
A competent mortgage broker will expose you to all the viable options available to you. It’s important to listen and carefully examine each one. Whichever you choose greatly impacts your financial future, so the decision isn’t to be taken lightly. Ask for their advice and be sure that you’ve given them not only all your information, but expressed what you’re looking for.
Real estate is important to us. Visit our location at 3695 South Sare Road, Bloomington, IN, 47401. Or call us with any questions at: (812)332-3001.