Whether you’re buying your first home or upgrading to a larger one, the home buying process can be stressful if not somewhat intimidating. From finding a realtor that can accommodate your needs to getting the ideal mortgage, it can be overwhelming. You can alleviate that stress by doing a little research before getting started. Remember, knowledge is power, especially when it comes to real estate and purchasing a home. It is better to be informed than stay ignorant. Here are several elements that lenders wish prospective home buyers knew before getting that mortgage loan.
Tips Before Buying a Home in Florida
- Even if you’re not ready to buy, it’s okay to speak with a lender – you’re probably wondering what the point of doing this is. Planning for home ownership can take months or even years whether you’re trying to increase your FICO score, pay off some of your debt, or re-structure your income.
- Finding the right lender is paramount – Florida State Mortgage Group, Inc. owner Steve McWilliam stresses the importance of finding the right lender to every prospective buyer he speaks with. According to his thinking, finding a mortgage lender that will, if need be, help you improve your credit score and go a long way saving you money with a lower interest rate.
- Learn the difference between pre-qualification and pre-approval – pre-qualification provides the lender with an estimate of what you could borrow based on your credit history as well as certain personal and financial information. Pre-approval means that the lender has found you creditworthy despite not having a contract in place. Once you’re pre-approved, you’ll receive a letter to that effect.
- Start saving for your down payment NOW – even if you don’t plan on buying for a year or two, it’s never too early to start saving for a down payment. Whether it’s in your checking or savings account, an IRA or retirement account, or you received the money as a gift, lenders need to locate the source of your down payment. Saving a little every month can go a long way.
Remember, lenders like to see consistency with your finances when reviewing a home loan application and don’t want to see deposits, withdrawals, or other large sums of money being moved around.
Home Buying in Fort Lauderdale with Florida State Mortgage Group, Inc.
We’ll review this and several other elements of the process that lenders wish borrowers were aware of in the second part of this article next month. To learn more about what lenders look for and what you should expect during the home buying process, call Florida State Mortgage Group, Inc. at (954) 359-3000 or visit our website at your earliest convenience. We are here for your assistance so call us!