When Do You Need To Apply For A Home Loan?

home loanSharing an apartment that used to be yours alone is not easy, and you know it is the perfect time to move if your things are bursting out of your closets. To make sure that you have problem free and seamless transition from renting to owning, you have to have a joint financial profile that will convince a mortgage lender to approve your home loan. Even though there is not definite amount of time in advance required for a loan application, the sooner you file your application, the sooner you will be able to buy a larger living space and move to the home what you like.

Pre-Approval Of Your Home Loan

The majority of real estates need you to show a proof of home loan pre-approval, or at the very least, a pre-qualification, before they start showing you homes. If you want to get pre-approved, you have to get in touch with a lender as soon as you find the desire to browse. It does not matter whether you want to buy a house now, next month, or after a few years. A pre-approval, which is basd on your credit reports as well as verified income, employment, tax returns, as well as down payment availability, will tell you how much you can afford for a home and it will tell your agent and the home seller that they can expect to close a deal once you decide to enter into a sales contract. Although it is less concrete compared to a pre-approval, sellers and agents will also accept pre-qualification loans – which is based on an initial review of your self reported assets and income as well as your credit scores – as these will serve as evidences that you can close a sale. Pre-qualification and pre-approval letters will expire. The expiration dates vary from one lender to another. Your loan officer will the one to update your file and give you such letters if necessary.

Price Negotiation

Focus your home search in the price range that you can afford so you could avoid disappointments. If you find a house that you would like to purchase, you have to request a preapproval letter that says the amount of you would like to offer instead of the total amount for which you qualify on your home loan Myrtle Beach. You can use the preapproval letter on the letterhead of your lender in bargaining when you are on the stage of negotiating a sales contract.

Loan Underwriting

Even though you can get a loan preapproval once you find a house, the actual process for the loan approval, which is also referred to as underwriting process, starts when you present a ratified sales contract to your lender, which means a contract has been signed by the home seller and you agreeing to a certain price and set of terms. Your lender will inform you as to how fast their company can finish an underwriting process, and a few lending institutions work a lot faster than the others. During this time, the lender will verify your financial information. They will also need a clean title, successful appraisal, as well as other items that are determined by the kind of loan that you have applied for.

Considerations

If you are concerned as to whether you will qualify for a mortgage loan or not, it is helpful to ask for a checklist from your lender. The list should contain the list of the things you have to get to be approved. Some of the things you need to do up to two years in order to qualify include raising the down payment, increasing the income and getting distance from anything that can cause credit report problems.

Call MB Mortgage Pros if you want to know more about home loans

MB Mortgage Pros
630 Chestnut Road
Myrtle Beach, SC 29572
843-353-2982
http://mbmortgagepros.com/

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630 Chestnut Road, Myrtle Beach, South Carolina, 29572

Call Us: 843-353-2982

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