The Lending Process Explained

Securing a loan for the purchase of a new property is without a doubt the most important step in the entire home buying process. Unless you plan to pay cash, this is the first thing you should do when considering a purchase. Before you ever go out to look at properties you should know how much you can afford to buy and an estimate of what your payment will look like within a certain price range. If you do not know this information, two things can happen: 1) You fall in love with a home that you cannot afford and would not qualify for or 2) You sacrifice on must have items and shortchange yourself because you never knew what you could afford to buy in the first place.

 

Applying for a loan can seem overwhelming and confusing at times. There is often a lengthy application followed by a considerable amount of documentation required to get the process started. There are several lenders that offer different programs and at different rates and terms. In order to make sure you are getting the best deal for your personal financial situation it is best to work with a lender who is experienced in the field and who keeps up to date with the ever changing lending guidelines and laws. Our preferred lender has been in the business for many years and is not just a loan officer but a certified mortgage planner who takes your entire financial situation into perspective. By taking the extra step to consider where you are today and what your goals are for the future, you are ensuring that the loan you choose for your current purchase will still fit into your lifestyle two years from now or ten years from now.

 

It’s important to note that no two loans are alike and no two people have the exact same financial situation. With that being said, it is crucial to understand the two key factors in qualifying for a loan which include your ability and your willingness to repay the loan. Your ability is based on your current employment and income as well as your existing debt. Your willingness to repay is based on your previous credit history and the level at which you committed to repaying prior loans or obligations in the past. There are no set rules when applying for a loan so be honest with your lender and they will work with you to find the best case scenario for your personal situation.

Let us know if you would like more information or take a moment to apply online.