Ahhhh. Spring is in the air, which means For Sale signs will soon be popping up in neighborhoods everywhere. The trouble is that, as challenging as finding the right home is, getting a home loan is even more so. It’s a lot more challenging to get a home loan now that the recession is over, and lenders are much more tight-fisted about who they hand their money out to.
It used to be that all you needed was to have a pulse and fog a mirror to get a home loan, but today it takes more work. Fortunately, when you apply for a home loan with Dollarback Mortgage, all it takes is three steps to be approved in no time.
- Get Pre-Qualified
Before a potential homeowner even starts looking for a home, he or she should pre-qualify for a loan. This step will narrow down the price range that the homeowner can look at and eliminates the chances that you will fall in love with something you can’t afford.
To succeed at this step, the potential homeowner will need to provide a top-level financial picture to lenders. This includes income, debts, and assets. This is no guarantee that you will qualify, but this is one step that can often be accomplished over the phone.
- Get Pre-Approved
At this stage of the game, you are getting a lot more serious about what you want. This step of the process is much more involved, beginning with filling out an application and providing the lender with documentation of the data you have provided. At this stage, the lender will perform a credit check, which takes a look at your debt and history of repayment. This process will also allow the lender to provide the applicant with a more accurate look at the loan amount and terms.
Getting a pre-approval will put you in a much better position with sellers since you are that much closer to getting a mortgage. The chances are good that you will be a much more welcome sight in the home-buying community.
- Get Final-Approval
By this stage, things are moving along pretty well towards a home purchase. At this stage, a homeowner might be asked to provide updated financial documentation since the pre-approval might be several months old. It’s nothing drastic. It’s just a formality. It’s important at this stage that a homeowner not mess things up by doing one or more things. These include:
- Do not apply for more credit
- Do not take on additional debt
- Do not change jobs
The lender may, at this stage, order an appraisal of the home being purchased. This will give them the actual value of the purchase. If the appraisal comes in below the purchase price, a loan will only be approved based on the appraisal price. That being settled, the home will be yours.
After these steps are complete, the toughest job to be done will be to decide whether you want a new kitchen or bathroom and what color to paint them. After all, the process is complete, and it’s clear sailing from there. You are about to take on a new title, one that has been cherished by Americans for many years: homeowner.