Unless you are absurdly wealthy, there’s a fundamental truth for anyone who is interested in buying a home: You are going to need to get a mortgage. That means participating in a long process that involves working with mortgage brokers and lenders in order to get the home loan you need to buy your home. While the process can be time-consuming, it is not overly difficult, and there are many ways to get the loan you need to buy your dream home. Here’s how you do it.
Find a Lender
A big part of finding a home loan is dealing with the right mortgage lenders for you and your family. In many cases, a broker will be able to help you find a lender who will offer you a good deal based on your qualifications. Brokers typically work with several lenders, so they are able to match clients to loans based on different lender requirements.
There are many different types of loans out there. These include:
- FHA Loans, which are ideal for first-time homebuyers. These are government-insured loans that come with reduced requirements, including allowing for lower credit scores and lower down payments.
- Conventional Loans, which are available to anyone who meets the necessary financial criteria.
- VA Loans, which come from the Department of Veterans Affairs. They are, of course, available only to veterans of the United States Armed Services and often come with lower rates.
Examine Your Finances
Your lender should help you pre-qualify for a loan, enabling you to determine how much you can afford and the down payment you will need. Remember, just because you pre-qualify for a loan does not mean that you should absolutely borrow that much money, as you need to make the determination about how much of a monthly payment you can afford.
File the Paperwork
Once you have pre-qualified for a loan, you’ll need to submit all of the necessary paperwork in order to actually get the loan. However, pre-approval can help you get your bid accepted on a new home because the seller knows that you can fulfill your end of the agreement.
Closing a mortgage can take time to complete, as you will need to track down a slew of information, including paystubs, tax returns, bank statements, and more. However, any broker will be able to give you a list of paperwork you need, and once you get that, you should be well on your way to completing the loan and formally purchasing your new home.
If you need help and live in Orange County or Riverside County, California, contact us today.