When the price and terms are agreed upon, the earnest money check and a copy of the purchase agreement are usually taken to a neutral party. This is often a title company, who researches the title of the property to be sure that there are no liens filed against it that would cloud your ownership. Hopefully you have already found a lender you want to work with prior to finding the home of your dreams. In providing the information necessary to pre-qualify for the loan, you speed along the transaction. A letter of pre-approval is pretty much required these days. It needs to accompany your offer to purchase so that the seller will be confident that you are really able to buy the house. Selecting your loan officer is an important thing as you will be in touch with them a lot for the next few weeks. You may also wish to shop for the best possible rate on your loan. Some mortgage companies charge interest paid in advance on the interest rates they quote you. This is called a discount point. Discount points make it possible to get a lower percentage rate over the life of your loan, but may require more money at closing. There are always innovative finance plans, and you should discuss your goals with the loan officer. Find one that you feel comfortable with, and feel free to discuss what you do not understand. Remember that you are spending a lot of money and the process should be as enjoyable as possible. When you are making your application, the loan officer should be able to tell you very close to the penny what dollar amount you are going to need to move into your new home. This amount should also be close to what you told your agent you wanted to invest. If this is not the case…this is the time to fix the problems.
After your loan officer has a chance to review your credit and loan application, he or she will be able to give you a reasonable idea about whether or not you can qualify for the loan. The loan officer effectively holds your home buying future in his or her hands. Many loan officers are capable of helping you fix poor credit and other blights on your credit history if you are honest and up front with them. You may have to write some letters of explanation but the process is generally painless. It is helpful if you supply the loan officer with all the documents they need on the first visit. It saves everyone involved with the transaction a lot of wear and tear and it saves you from having to run all over town. If you have questions about your credit history or how much you can qualify for, a call to a loan officer can be time well spent before you go out and fall in love with a property. The information gleaned from a simple call can make a huge Budifference in your buying experience! We will be expanding this information in the not too distant future but if you have questions today… Call a Realtor! Answering questions is an important part of what we do!