Chris and Alli's Tips on Financing Your Home
Looking to buy a home? Get pre-approved!
Many buyers wonder what the difference is between pre-qualification and pre-approval.
- Pre-Qualification lets you know how much you can afford to borrow based on how much you have, earn, and owe.
- Pre-Approval is much more detailed, with lenders looking at you credit score and past payment history. Pre-Approval increases your standing in a sellers eyes.
Financing your home is an involved process, here are the steps involved.
1. Loan application is completed and submitted to lender.
2. The lender may request copies of your current pay stubs, recent bank statements, credit card statements, investment/brokerage statements, loan statements and your past two years of tax returns.
3. Lender orders appraisal, credit report, and verifies your employment and assets.
4. Lender provides a good faith estimate of closing and related costs.
5. Lender evaluates application and support documents, approves loan, and issues letter of commitment.
6. Closing is held, loan documents are signed and the loan is funded.
7. Lender disperses funds to the settlement/closing agent, the seller is paid, and the title to the home is yours!
8. Required documents are filed with the county.
There are many types of loans to consider. Fixed rate and adjustable rate mortgages are the most popular.
1. Fixed rate mortgages are held for a specific length of time, typically 15 or 30 years. The interest rate of the loan never changes.
2. Adjustable rate mortgages are held firm for a set amount of time, then are raised after that time period expires. Homeowners then have to either refinance or look into buying that new home!
Discuss with your lender the mortgage that is right for you.
Some of our favorites:
Greg Engleman Equitable Mortgage (614) 764-1232
Contact him at greg@eqfin.com
Sarah Payne CBKT Mortgage (614) 526-5627
Contact her at sarah.payne@kingthompson.com
Dave McKey Priority Mortgage (614) 431-1141
Joe Sauk Wells Fargo (614) 888-2670 Click Here for Web Site