When To Get Qualified For A Home Loan
There are different reasons for different home buyers as to getting started with the lending process. Some home buyers are fortunate in that they have plenty of cash for a down payment, great credit, and low income to debt ratio. Many, however, don't fall into that category. Here are some thoughts about getting started when you want to buy a home.I often am asked "when should I get qualified for a loan?". The answer is one should start looking at getting qualified for a home loan as much in advance as possible.
First of all, always call a loan officer before you start looking at houses. One reason is that you want a realistic idea of what you can afford and what you actually want to spend. Another, don't fall in love with something you cannot afford.
Not only is it important to know what you want to spend and what you can spend, it is most important these days to have the highest credit score possible BEFORE you have your credit pulled. When I talk to potential home buyers I always review their current credit situation and make recommendations on how they may get a score up before I pull credit. Credit score absolutely affects the interest rate you get. Starting early on this issue is important. The more time you have the more opportunity to affect your score.
What loan programs will you qualify for and what programs best suit your needs? This is quickly determined and will perhaps eliminate certain homes you would consider.
Get an understanding of what you will need to provide for the mortgage loan transaction. Getting a head start on gathering documents is valuable in the long run.
How much cash to you need? A good thing to know ahead of time. What are sources of cash?
I have home buyers sometimes who want to buy a home but who need direction on handling specific issues regarding credit, debt, down payment, etc. Some may need to wait several months before they are ready to buy; having a road map to get there is invaluable.
Getting qualified as soon as you think you may be in the home market will make the process smoother. It will give you time to sleep on your choices and make your more confident when you start looking at homes.
I do a home buyer class each month in Fort Thomas, KY that lays out all the information necessary from the qualification process to the closing process. It doesn't matter if you are in the home buying market soon or if you just want to dip your toe in the water this home buying class will prepare you for what you need to know.
Get in touch to learn when the next home buying class is offered! It's never too soon to start the qualification process.