There are many steps to buying a home and reaching that move in day! Probably the most important one will be to make sure you qualify for a mortgage, and are comfortable with the payments. In this part of the Intown Atlanta Real Estate Buyer’s Guide, we’ll talk about getting your mortgage. Your Lender, Your, Loan, Don’t Lie!
Now the title might sound a bit harsh, but I’ll explain. There are many, many options to you when you look for a lender or mortgage broker to help you with the financing of your new home or condo. Above all else, you want to make sure they can get the job done. So what all is involved?
Selecting The Right Lender or Mortgage Broker
You found me, right? You decided that my knowledge of the Intown Atlanta real estate market was important, and I knew the area you wanted to buy in. You decided I understood what you were looking for. You need the same knowledge and understanding from your mortgage broker. But, they need to KNOW you….in a financial sort of way. They will be asking you lots of questions, and asking you for various documents. Don’t dilly dally in getting them what they need. They need it for a reason! And here’s where the “don’t lie” part comes in. If you missed payments on credit cards, or any other important financial “stuff” has happened to you, bring it up NOW! You can’t hide it…it WILL be found. And the sooner the better, so your mortgage broker can address the issue, and let you know if it IS an issue in your getting your loan.
Disclose, Disclose, Disclose
If you were selling your home, I’d be telling you this for a different reason. But for the purpose of BUYING your Intown Atlanta real estate, you need to disclose things for a different reason. If Grandma Hilma is proud of you and going to give you a gift ot $10,000 to help with your down payment, you need to disclose this. If you already have the money in your account, it will show on a bank statement and believe me, somebody is going to want to know where that came from. You’ll need a gift letter from Grandma. Same applies if the money is coming from your parents. You’ll disclose your financial situation when your lender gets a copy of your credit report. Credit is crucial to getting your loan as well as getting a better interest rate on your loan.
You’ll need to show proof of income. Bank statements, pay stubs and previous years tax returns are going to be asked for. Gather these documents NOW…don’t wait till you’ve found the home or condo of your dreams, and now you’re trying to find all the paperwork you need for your lender.
Pre-Qualified vs. Pre Approved
This is often a confusing and misused set of terms in real estate financing. When you have been pre-qualified, most likely, your lender or mortgage officer has pulled your credit report, looked at the amount you told them you make and given you an indication you qualify for a certain mortgage amount. This helps you know the amount of Intown Atlanta real estate you can shop for. But by being pre-approved, you’ve provided your lender all the documents we’ve talked about. He’s been able to review all this information in greater detail, know your financial condition, and then just be waiting for you and I to write an offer on your home!
In today’s real estate market, homes are moving quickly. And manytimes, the offer, especially on a foreclosure requires you have a pre approval from a lender. Sometimes it will be a lender other than you have initally choosen, but you can still get your actual loan with the lender you have selected.
During all this process, you may find out that you qualify for MORE than you want to spend. This is an important step for both you and I to take a look at. You might qualify to purchase a $300,000 home, but maybe YOU don’t want the payment that comes with it. After looking at the number, you and your lender might find you are more comfortable with the payment on a $250,000 home. This is important for you and me, so I can make sure we look at the right priced homes, and I don’t show you more of a home that you want to buy!
Your Lender, Your Loan, Don’t Lie leads to another equation….Your Lender, Your Loan = Your New Home!
I’ve got a great team that includes lenders I’ve worked with in the past. They know the Intown Atlanta Real Estate market and will help both you and I get you into your new home!