Financing

Believe it or not, one of the first steps in buying a new home is financing.

Typically you get started by getting pre-qualified for a mortgage.  

 

This helps you in many ways:

  • Determine how much you can and WANT to spend

  • Find any new financing offers that may take time to qualify for

  • Solving unknown credit issues because with current regulations this can takes months

  • Gives you time to improve your credit rating in little ways that can get you a lower rate

  • Stop you from making any big financial, family or job decisions that would affect your ability to get a mortgage

Getting Pre-qualified is free, fast and easy with most lenders.

You can start with your primary bank, your credit union, one of our approved lenders or Google mortgage rates, but the actual full committed mortgage process will not happen until you put a home under contract.  This just gets the ball rolling.  Please see the note about “Builder Approved Lenders” as they often contribute more to your closings costs than non-approved.

 

Getting Pre-qualified:

  • It is free (yes, really)

  • It is no obligation (again, really it is)

  • Most lenders have an on-line pre-approval that takes just a few minutes

  • It will save you a lot of time and money

 

Why Pre-Qualification Matters:

  1. Find Your Comfort Zone

    • Start your home search right by knowing exactly what you can spend.

  2.  Make an Offer Faster

    • Getting pre-qualified early can help you be ready to make an offer faster.

  3.  Prove You're Credible

    • Give sellers confidence to accept your offer by showing you can get a loan.

 

About Approved Lenders:

Most builders have “approved lenders”.  These are local lenders that the builder has a working relationship that makes for a more smooth buying process for the builder’s buyers, but you are not obliged to use any of them.  These lenders usually contribute some of the closing costs though.  

 

 

 

Frequently Asked Questions:

 

What’s the difference between getting pre-approved and getting pre-qualified?

Mortgage pre-approval and mortgage pre-qualification are often used interchangeably, but mortgage pre-approval usually requires more paperwork. Mortgage pre-qualification is more informal, but still shows sellers that you’re not just shopping for a home on impulse. In both cases, your lender will assess your financial profile, and give you a letter that states the amount they’d be willing to loan you. You should bring your pre-approval or pre-qualification letter with you to submit it with your offer once you find the home you want to buy.

 

I just started looking at homes. Is it too early to get pre-approved or pre-qualified for a mortgage?

Many real estate professionals agree it's never too early to get pre-approved or pre-qualified for a home loan. In fact, it's a good idea to get a mortgage pre-approval or pre-qualification even before you start your home search because it will help you figure out how much you can spend comfortably on your new home.

 

Am I obligated to work with the lender who pre-approved or pre-qualified me when I’m ready to buy a house?

Many borrowers complete the mortgage process with the lender who issued a pre-approval letter or pre-qualification letter, but you’re not obligated to. When you’re ready to start your official mortgage application, it pays to shop around and talk to at least two additional lenders to find the best mortgage rates.

©2020 by Morris Creek Community. NOTE photos and drawings are artist rendering only and may or may not have upgrades. See agent for all details.