When and How to Begin The Mortgage Process

The mortgage process can be confusing. So, when is the best time to start the mortgage process?

The best time to start is before you begin looking for your new home.

Get pre-approved for your loan. This will put you in a stronger buying position, as you already know that you have a loan and the exact amount for which you have been approved. Being pre-qualified is not enough. Pre-qualified means that the lender has reviewed your application, but not verified the information.

If you are pre-approved, the lender has verified all information you have supplied, and the only additional information they need is the purchase agreement and an appraisal. When you are pre-approved, it is as good as having the cash in your hand.

Many sellers, although eager to sell their home, may not wait for your loan approval. If another buyer comes through with the same qualifications as you possess, but has been pre-approved, you may lose the house. Even eager sellers may not want to wait for your money to arrive.

Years ago, you would meet with your personal banker and pay whatever costs and rates they charged. However, things are much different today! There are a wide variety of options and lenders available.

Speak with your friends, family, and neighbors to learn about their experiences with lenders. As a real estate professional, I am familiar with local lenders who are experienced and ready to serve you. Contact me at any time and I would be happy to provide you with a referral to a reliable lender.

How do you know if a lender's charges are fair? It is difficult to know exactly what each lender will charge you. Many times there will be charges hidden in application and underwriting fees that will cost you extra money.

Make sure that you ask your lender to thoroughly explain each and every fee you will be assessed, so that you have a clear understanding of your total mortgage costs before signing.