Sale of mortgage before or after buying a house?

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We are about to buy our first house, and I read many books on the purchase of housing and mortgages. But there’s one thing I can not understand, and I can not find a Antwort.Sollen we first choose a lender, and then go shopping for a home? Or we should first learn to make a home and an offer and acceptance, then choose a lender? I know we should be ready for a loan (we already are) approved, but not before the necessary approval for a lender we work. How are we supposed to go around if we do not yet know what needs to be a house that we buy and how much does it cost? Otherwise, the conditions of the loan (eg interest charges) depending on the cost of the house? If yes, how can we shop for a mortgage before you even know what size will it be?

6 Comments
  1. Reply
    David Z
    May 19, 2011 at 3:11 am

    you need to pick your lender before you pick a house.

    Getting pre approved takes some time so to do this with one lender and then use another will take up a lot of your time. You are not going to like the lending approval process and you will not want to do it more than once.

    You are best served if you are pre approved by lender you intend to close with. You will send your pre appovoal letter with purchase offer to indicate you have ability to close in a timely fashion.

  2. Reply
    Atticus Finch
    May 19, 2011 at 3:13 am

    I would get pre qualified with a lender or two. Shop hard and do not pay any points and negotiate closing costs.

    It is the lender who pre approves…what kind of pre approval do you have? Does not make sense to me because individual lenders are not bound by any outside agreement you might have. Please explain.

  3. Reply
    loanmasterone
    May 19, 2011 at 3:13 am

    In order to find out the type of loan programs you are qualified for you will have to fill out a loan application, with a mortgage broker, which you can find one in your local telephone book.

    Make sure this mortgage broker or mortgage banker is able to do government loans such as FHA and VA loans if you qualify for one.

    He will fill out this application, which takes awhile so grab your favorite beverage and sit down. Once you have completed the application, he will run your credit report which will have your credit scores. These credit scores will determine your interest rate.

    The amount of your monthly debt payments you are required to pay as per your credit report and the amount of mortgage you can take on based on your income will determine the amount of house you will be able to purchase.

    When you speak with the mortgage broker you will need the following documents to complete the loan application, there will be others, but this will get you started.

    #1 One month of pay stubs for each person that will be on the mortgage.

    #2 Six months bank statements from each bank in which you bank as well as statements from any 401K from you place of employment.

    #3 Two years of federal income tax along with the W-2 that match.

    Once he has all that he need to do he can then issue you a pre-approval letter so you can purchase a home. In this pre-approval letter will be the amount of house you are qualified to purchased.

    Once he gives you this pre-approval you may now find a real estate agent to find yourself a home or he might have a referral.

    Now make sure before you get your pre-approval you and your mortgage broker go over all your options as to the mortgage programs you qualify for, the interest rate, monthly payments.

    If you are getting a FHA, fixed rate, two loans to eliminate PMI like an 80/20 or one loan, if you are qualified for and approved for a 100% loan.

    You should select the loan that best suit your financial condition at the time. That could be an adjustable rate loan. It could be a fixed rate loan for 5 or 10 years and then adjust. Some adjustable rate mortgages only adjust once.

    Make sure your mortgage broker explain all your options so you may make an intelligent decision.

    What might be good for one person might not be good for you, in other words just because your friends and all your real estate buddies are telling you about the great fixed rate they got, your financial situation might call for something else.

    So select the best option for you and your financial situation.

    You should also get a Good Faith Estimate (GFE) which will indicate the cost you will have to pay for getting this loan. It will also indicate the amount of your down payment.

    Once you have found a home the real estate agent will then prepare a contract for you and the seller to sign.

    Your mortgage broker will now order an appraisal to show proof of the property value.

    The mortgage broker might ask for additional information or documentation, don’t get all up tight this is normal, just supply the information or find the documents needed.

    After the appraisal has been completed you will be called by your mortgage broker to sign your loan docs so you can take possession of your new home.

    Before signing any loan docs make sure they say exactly what you and your mortgage broker went over when you decided on what mortgage program was best for you.

    I hope this has been of some use to you, good luck

    “FIGHT ON”

  4. Reply
    Crosstown Clay
    May 19, 2011 at 3:59 am

    You should definitely get pre-qualified before shopping; this way you will know roughly how much house you can afford. The prospective lender will need to know your financial situation and probably take a mortgage application; then run your credit and based on a hypothetical purchase price be able to tell you what your loan amount could be. This pre-qual process shouldn’t obligate you to follow through with this particular lender, but it does get your foot in the door. And don’t give anybody any money for a credit app and appraisal yet! Don’t just go up to a lender and say “what’s your rate?” That’s a silly question. The lender must assess your financials and credit to quote real terms specific for you. Anybody else is probably going to do a bait-n-switch. You are especially vulnerable being a newbie.

  5. Reply
    RED
    May 19, 2011 at 4:40 am

    You can only get “pre approved” before you pick the house.You can’t get final financing until you get an offer on a house accepted. Once you get the house the actual financing can begin. The lender needs to know the actual house information to approve a loan. I would recommend that you pick a lender for pre approval that you would plan on using for the loan. There are a lot of onlin scams for lending right now so be careful and good luck on your house search! A good realtor should be able to recommend a reputable lender.

  6. Reply
    mullson
    May 19, 2011 at 4:48 am

    BEFORE BEFORE BEFORE!

    When you find a house you like, and you want to put an offer on it, they will ask for your pre-approval letter. If it takes you 3-4 days to get pre-approved from the bank – you could miss out on the house if someone else puts an offer in while you are messing around getting your paystubs and stuff together.

    Do it BEFORE! I learned the hard way.

    You can tell the lender/bank that you are still deciding on a house but are looking for one in the xxx, xxx price range and see if you can get approved for there. Most lenders can tell you what the max you can borrow is too. That will help you decide too!

    If house A is affordable but house B is nicer and you want it, but its 10,000 over what your lender will lend you, then house A it is 😉

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