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Mortgage In Alamo
Alamo Mortgage
How Do I Choose the Right Lender for Me?
Make sure to choose your lender carefully. As you are researching, look for
financial stability and a reputation for customer satisfaction. Be sure to
choose a company that gives helpful advice and that makes you feel comfortable.
A lender that has the authority to approve and process your loan locally is
preferable since it will be easier for you to monitor the status of your
application and ask questions. Plus, it's beneficial when the lender knows home
values and conditions in the local area. Do research and ask family, friends,
and your real estate agent for recommendations.
What Will I Need to Provide to Secure a Loan?
The first step in securing a loan is to complete a loan application. To do so,
you'll need to provide the following information:
- Pay stubs for the past two months
- W-2 forms for the past 2 years
- Information on any long-term debts
- Recent bank statements (checking and savings)
- Tax returns for the past 2 years
- Proof of any other income
- Address and description of the property you wish to buy
- Sales contract
During the application process, the lender will order a report on your credit
history and a professional appraisal of the property you want to purchase. The
application process typically takes between 1-6 weeks.
How are pre-qualifying and pre-approval different?
Pre-qualification is an informal way to see how much you may be able to borrow.
You can be "pre-qualified" over the phone with no paperwork by telling a lender
your income, your long-term debts, and how large a down payment you can afford.
Without any obligation, this helps you arrive at a ballpark figure of the amount
you may have available to spend on a house.
Pre-approval is a lender's actual commitment to lend to you. It involves
assembling many financial records (listed above but without the property
description and sales contract) and going through a preliminary approval
process. Pre-approval gives you a definite idea of what you can afford and shows
sellers that you are serious about buying.
Remember that a pre-approval letter is not a final loan commitment; it is more
of a promissory note. It states a lender's confidence in your financial strength
and shows that you have the ability to follow through on a purchase. This
information is important to sellers. They can rest assured that the deal will
not fall through due to financial problems - one less major concern for them
that puts your offer way above one without a pre-approval letter.
Housing deals fail most often because a buyer is unable to get a loan.
This leaves both the buyer and seller unhappy and without a deal. In order to
avoid this, most real estate agents suggest (and often require) that home buyers
get pre-approved for a home loan before they ever start looking for a house.
Already having your pre-approval letter will make your bid more attractive to a
seller, will put your bid above others who are not pre-approved, and will help
you avoid rushed or hasty loans or interest rate decisions down the line.
Your mortgage professional is going to be a huge part of your home buying
experience. Make sure that you interview and are happy with the person you are
working with. It will be up to them to walk you through the financing process,
including the final Escrow signing, and help you make sense of everything.
Click below for more Alamo real estate information and tools:
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