Mortgage 101: Home Financing Made Easy
Friday, August 21, 2015, 6:00 AM | Leave Comment
The decision to purchase a home is one of the biggest ones you’ll ever make. It represents agreeing to purchase a property while establishing a contract that can last 30 years or more.
The good news is that buying a home with a mortgage doesn’t have to be hard.
Let’s examine the home-buying process to ensure your mortgage is exactly what you want without any hidden extras.
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Look for a Home
The first step to obtaining a mortgage is to look for a home that you wish to purchase. The type of home you choose will give you an idea of what kind of mortgage you need, which in turn will allow you to begin looking for lenders who are willing to work with you.
When looking for a home, keep two things in mind: value and the neighbors. You don’t need the biggest or the best home to have something capable of appreciating in value.
You just don’t want bad neighbors. They can make living in your home something that you would otherwise only experience in nightmares, and they can make trying to sell your home an even bigger problem.
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Find a Favorable Lender
A favorable lender is one that will provide you with a mortgage that works with you. This means they support the type of mortgage you’re seeking and are willing to work with you.
Conventional loans, government loans and military loans are among the most common types of loans associated with mortgages. Your needs for a mortgage may make one lender more favorable than another.
The best way to find a lender willing to work with you is by using a program like the Austin mortgage loans services from Sente Mortgage or a provider in your area. These businesses can help you find lenders who may be outside your area but capable of providing you with a complete mortgage that works in your favor.
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Seek Pre-Approval
Pre-qualification and pre-approval are two similar subjects, but they are different.
Pre-qualification is the step where a lender looks at your general finances and status. Lenders use this much like employers use a resume to see who they should let through the door.
Pre-approval is a more thorough process. This involves having the lender look closely at your financial assets, your marital status and other factors to deem if you are worth lending to. While this process can be involved, it is wholly worth it.
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Work with Your Lender
It’s incredibly common for lenders to reject your application. Roughly half of every mortgage application results in a denial.
The good news about this is that the reasons for denial are often easily fixed. These can range from crossing the proverbial ‘T’ on your application to simply waiting a few more days before resubmitting your application.
The point to take away from this is that you may need to work with your lender. It’s advantageous for them to work with you, but there may be certain things you need to do before you can acquire your mortgage.
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Take Care of the Formalities
When your mortgage application has been approved, then it is time to take care of the formalities. This includes appraising your prospective home, signing your contract and closing on your home.
While this process involves numerous steps, a reliable mortgage company will generally be willing to walk you through each step of the process. They want your business, so it is advantageous for the mortgage lender to ensure that the fine print doesn’t stop the mortgage process.
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Mortgages Aren’t Quick
The majority of the typical mortgage process occurs in about 30 days. You can then begin the process of making your future home your own when everything seems to be in the clear regarding the mortgage company and the current owner of the home you plan to purchase.
The thing to take away from this is that the mortgage process can be lengthy, but the steps are relatively simple. You need only to find the right lender, work with them, and do the things they ask of you. This will allow you to acquire the financing needed to acquire the home you’ve always wanted.
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Anica Oaks is a Freelance writer and web enthusiast. Read some of her published work on her Google+ page.
