Get The Right Loan
in 5 Steps

During home searching, there is a lot of information to consider that can be overwhelming and cause stress if done without much knowledge. Due to this, there are some questions some might have looked past. One of them is how to get a mortgage. Hopefully, this will help you get a mortgage and lock in your dream home!

STEP #1: LOOK FOR AN EXCELLENT REAL ESTATE AGENT

Having a high-quality real estate agent by your side helps when getting the right loan. Additionally, they can help you with the process of home searching and buying! This is why having the right agent and team on your side is very critical.

How can a real estate agent help you find a loan?

• Advice tailor-made for you: This guide will help you have a great start but not each person has different needs and conditions. This is where your real estate comes in to provide you with advice specifically made for you about getting a good mortgage.

• Enlighten you about your choices: A great real estate agent isn’t just your advocate, they are also specialists in the field. Your agent will help you out to teach you about the lending options offered to you.

• Introduce you to a trusted lender: We’ll talk about this more in step #4, however, the key to your mortgage success is having a good lender on your side. A great real estate agent has the connections and knowledge needed to set you up with the right lender.

• Get pre-approved: Getting pre-approved for your mortgage speeds up the process of buying a home. It is a very important step so make sure you are with an agent who can help you get pre-approved. We cannot stress the importance of this enough!

STEP #2: WHY DO YOU NEED A LOAN?

There are a lot of different mortgage options to fit people’s needs and purposes for taking out home loans. Before you can figure out how to get a mortgage, you must first understand why you want one!

The following are some of the most common reasons why people require home loans:

Purchasing their first home

During their home search, first-time buyers frequently experience increased stress. Sure, it’s exciting to embark on the journey of homeownership… But it can also be nerve-racking! One of the primary reasons for this is the mortgage!

Fortunately, there are some special mortgage programs for first-time homebuyers that can alleviate your concerns. These options are dependent on where you live, so speak with your real estate agent to find out what your options are in your area!

Upgrading to a more valuable home

Your mortgage is even more important if you are buying and selling a home at the same time. Because you’re dealing with two high-value transactions, there’s a risk that buyers planning to move up will make a common error and end up with two mortgages or worse, no home!

There are specialized loan options available for move-up buyers as well! These mortgages provide some financial security and peace of mind by allowing you to borrow against the equity of your current home and use it to buy the new house; the proceeds of the sale are then used to pay down the mortgage.

STEP 3: DETERMINE WHAT YOU ARE ELIGIBLE FOR

Of course, it’s not just a matter of deciding on a mortgage; you must also qualify for it! Mortgage qualification is determined by a variety of factors, including credit history, income, a manageable debt-to-income ratio, and sufficient funds for a substantial down payment.

However, not all mortgages are created equal. Each type of loan will have different eligibility requirements, as well as potentially more esoteric qualifications. The highly desirable VA Loan, for example, has great benefits and relatively lenient standards, but it is only available to current or former military service members.

As it turns out, there are special home loans available for doctors as well!

It’s critical to start looking into these qualifications as soon as possible. The last thing you want to do is fall in love with a home, go to submit an offer, and discover that you do not qualify for the mortgage. That’s why a good real estate agent will work with you to get you pre-qualified or pre-approved for a mortgage!

STEP 4: MEET THE APPROPRIATE LENDER

When it comes down to it, finding the perfect mortgage will depend on your lender.

Isn’t it shocking?

We often recommend that our clients work with local lenders, particularly those with whom we have a solid working connection, at The Banks Team. This allows us to take advantage of our relationship and provide our clients with the best possible deal!

Local lenders are frequently more accommodating than larger creditors. This includes maybe giving better rates, assisting you in learning everything you need to know about your alternatives to set your mind at ease, and assisting you in becoming pre-approved early in your home hunt!

So, how do you decide which lender is right for you? The answer, like so many other aspects of the home-buying process, is to ask your real estate agent!

STEP #5: CLOSE ON YOUR PROPERTY!

If you’ve followed the steps above, this should be straightforward (at least in terms of the mortgage)! Because you’ve already been pre-qualified and pre-approved, finishing the specifics and signing the paperwork should be a breeze.

So, what do you have to lose? To get started with your home search, all you need to do is meet with an agent, and our professionals are ready to assist you! Simply click here to set up a free financial consultation with one of our Home Search Analysts now!