The home buying process can be complicated, especially if you are a first-time buyer. Researching all of the important information regarding home loans and mortgage loans can be overwhelming. This guide will help break everything down so that you can make the best decision possible.
The initial step should be to figure out ways to finance your home. You may be unfamiliar with how to qualify for a home loan. However, you can acquire favorable terms if you are prequalified for a mortgage loan. The process is quick and will not impact your credit report. You will have to provide information on your total assets, income, and debt, based on which, you can figure out which houses are in your price range and estimate your monthly mortgage payment accordingly.
Finding the Right Loan
Your mortgage should be tailored to your unique financial situation; therefore, you need to research the different types of mortgages. If you have good credit, you may qualify for a conventional mortgage that is less restrictive than other types of loans. Federal Housing Administration (FHA) loans are another option available to people with low credit scores. If you are a veteran or an active service member, you may qualify for a Veterans Affairs Loan. Other options include Jumbo Mortgage loans and Adjustable Rate Mortgages (ARMs). Make sure to speak with a mortgage loan officer and assess your options before settling on one.
Getting pre-approved helps simplify the loan buying process. This helps show sellers that you are committed to making an offer. Besides, it also gives you an advantage over other buyers. In order to get pre-approved for a mortgage, you will have to submit the necessary paperwork related to your finances. The lender will check your credit score along with pay stubs, W-2s, tax returns, and bank statements. Assessing all of this information allows your lender to calculate your loan amount. Keep in mind that the pre-approval status only lasts 90 days. Keep in mind that the pre-approval letter is time sensitive and may only be good for 30 to 90 days depending on the lender.
Once you have found the home you are looking for, and the seller accepts your offer, apply for the mortgage and stay in constant contact with your lender. If they have any additional questions, seek answers at your earliest convenience to keep things moving forward. Try to stay calm and be patient. The lender will set up an appointment so that an appraiser can make sure that the home’s value matches the purchase price. They’ll also check to ensure that there are no liens on the home. Therefore, put your finances in order and avoid taking on any extra debt while your loan is being processed. If you make any significant financial changes, it could adversely affect the status of your mortgage approval.
As you move closer to finalizing things, you will receive a Closing Disclosure (CD) from your lender that outlines the terms of your mortgage and the final costs. Review the terms closely and ask questions if something is unclear. Be prepared to make your down payment and bring proof of your insurance and a cashier’s check to your closing. Once you sign your mortgage documents, you are all set to move into your dream home. Searching for home loans can be a stressful process. However, following the steps outlined in this article can make things a little easier. To learn more about the Las Vegas real estate market and to stay updated on the latest housing market trends, contact our experts at Visit Vegas Homes or call us at (702) 826-1545 today!