Are you eager to buy a house in Eugene, OR, but you’re unsure how to get a mortgage? Today’s super-low mortgage interest rates make homeownership a doable dream. Here are three steps to make the process more comfortable when it comes to financing your new home.
No.1 – How to Get a Mortgage: Freshen Up Your Financial Information
Before you talk to a home loan company, it’s a smart idea to put your finances in order. A mortgage broker will speak with you about how to get a mortgage and request a substantial amount of financial information during the loan approval process. You will make the process easier by tackling your finances at the start of your home search.
New homebuyers are often stunned at how much information they have to provide to get a loan. There is indeed a bunch of paperwork involved in obtaining a loan, and preparing makes it much less stressful.
Examples of the documents you’ll need include the following.
● W-2 Form
● Bank Statements
● Proof of Employment
● Proof of Additional Income
● Tax Returns
Gather as many financial documents as possible before you meet with a loan professional.
No.2 – How to Get a Mortgage: Getting Prequalified
A significant benefit of meeting with a home loan officer early in the process is learning how much house you can afford. At this stage, you’ll decide whether to pursue a mortgage pre-qualification or an approval letter.
In general, getting prequalified for a mortgage is a simple process. All you’ll need to do is give the mortgage lender information on your income, debts, assets, and proposed down payment. The lender uses the data to provide an estimate of how much money you can borrow to buy a house.
A pre-qualification helps you narrow your home search. However, it’s essential to keep in mind that the bank does not promise you that you’ll receive a mortgage for a specific amount of money. Full home loan approval comes after the lender scrutinizes your mortgage application.
In contrast to a mortgage pre-qualification, a pre-approval letter from a lender is a promise that you’ll likely receive financing. You’ll submit a mortgage application to obtain pre-approval for a home loan. Unlike with a pre-qualification, the pre-approval gives you an exact maximum mortgage amount so you can house hunt with confidence.
Since a loan pre-approval is a commitment from the lender, there are strict requirements. For example, the lender will carefully examine your credit background. Although you don’t need flawless credit to obtain a mortgage, you’ll have more financing options with excellent credit.
A pre-approval from a lender brings significant benefits. One of the best perks comes from knowing exactly how much money you can afford to spend on a house. There’s no denying that having a purchase price in mind makes the buying process less stressful.
Other benefits of going through the pre-approval process include
● The Promise of a Home Loan
● Relationship with the Lender
● Potential Interest Rate Lock
● Negotiating Power with the Seller
Once you are prequalified or pre-approved for a loan, it’s time to find your house.
No.3 – How to Get a Mortgage: Step into Homeownership
All the early work you do with a lender prepares you to become a smart buyer. You can start searching for a house, confident of what you can afford.
Lane County is a fantastic place to live, and the housing market is typically strong. We recommend interviewing several estate agents in your area.
An experienced local agent understands all the possibilities open to you at your price point. What’s more, you’ll want an expert real estate pro to represent you throughout the buying process.
Chances are, you’ll love many of the houses you tour during your real estate journey. Take your time to think through your needs as you look at each property. It’s a smart idea to return to a house that you love several times before making an offer to purchase it.
Close on Your Mortgage
Finalizing the purchase of your dream home runs much more smoothly when you have pre-approval of your loan. However, there are still several steps before you receive the keys to your new front door. Your real estate agent and mortgage officer will assist you with the efforts to make the process easier.
The home appraisal is key to completing the loan process. Your lender will hire a residential appraiser to determine the fair market value of the house. The assessment is crucial because the bank won’t fund a home loan for more than its market value.
Indeed, nearly twenty percent of buyers face appraisal problems. If the house you want to buy appraises too low, you have several options. You could
● Add Money to Your Down Payment
● Negotiate a New Sales Price for the Property
● Terminate the Sales Contract
Once your loan makes it through the required steps, the lender funds it. You will go through a final meeting, often called the closing. Expect to sign your name on many, many documents before you receive the keys to your home.
Lastly, today’s low mortgage interest rates make financing your new home affordable. An expert home loan officer knows how to guide you through the steps to make the process easier. From getting prequalified for a mortgage to signing your closing documents, you’ll discover that buying a house is an achievable hope.
Contact the experienced home loan officers at Strategic Mortgage Solutions for information on how to get a mortgage to buy a home in Eugene, OR.