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5 Steps to Obtaining a Mortgage

by Connie Erickson
google map to real pro systems

Today’s stricter lending environment means that processing a mortgage application is more complex than ever, given the number of steps that lenders, underwriters, and mortgage insurers must all complete before home buyers truly have their financing in place.

To help ensure the process goes smoother, you can also take steps of your own. It’s a good idea to discuss the process with me, I'm an Accredited Buyer’s Representative (ABR), even before shopping for homes. By planning ahead, you’ll be in a much better position to negotiate and move forward on a purchase—and avoid any unpleasant surprises regarding your mortgage.

1. EVALUATE AFFORDABILITY
Lenders and mortgage insurers look at a variety of factors, but the two most important are your monthly mortgage payment and your total debt loan, relative to your gross income. As a home buyer, it’s also important to consider additional expenses, beyond your mortgage payment, that can impact how much home you can afford. Depending on your situation, these other expenses could include property taxes, mortgage insurance, homeowners insurance, home maintenance expenses, homeowner association fees, parking expenses, and utilities.

2. DISCUSS YOUR OPTIONS
Deciding what type of mortgage is best for you depends on your personal situation, your financial scenario, and your future plans. For example, if your down payment isn’t large enough to qualify for a conventional loan, an FHA mortgage can be an excellent option. Alternately, you may qualify for an attractive program offered at the national or local level. Mortgage programs are always changing, so ask me about current options.

3. INTERVIEW LENDERS
I can provide several recommendations, based on past home buyers’ experiences. Rates and fees are typically very competitive between lenders, so it’s often more important to focus on other factors including the level of service provided and how well they’ve executed transactions for other buyers. The type of mortgage you are seeking may also impact your choice of lender, since some are more familiar with certain mortgage programs than others.

4. GET PREAPPROVED
Completing a loan application with one or more lenders will help confirm whether your intended mortgage financing plans will work out as hoped, or if you must modify your plans. It’s important to understand since pre-approvals are contingent upon the lender receiving full documentation; your pre-approval does not guarantee that you have a mortgage. Still, it’s an important first step that will also put you in a better negotiating position with sellers.

5. COMMIT TO A LENDER
As soon as you are under contract to purchase a home, commit to working with one lender to complete your mortgage application. You will probably be charged a fee at this point because this is when the lender starts incurring processing expenses on your behalf. Show your lender that you are serious about working in partnership with them by submitting all the required documentation as quickly as possible.

Following these five steps will greatly improve your results in getting a mortgage. Count on me to provide more detailed information on each step on the process and answer any questions.

October 2010 Door County Real Estate Market Report

by Connie Erickson

Fall has been, and continues to be, very active….much more than in 2009. The one big difference between 2009 and 2010 is that I’ve not had one Buyer say to me: "I think I’ll wait", "The economy scares me", "I think my job may be in jeopardy." Quite the contrary, 2010 Buyers are buying because our prices have decreased somewhat and the interest rates are great.

To see the up to the minute stats on the market as of October 1, 2010 CLICK HERE.

Tell all your friends to visit my web site, www.ConnieErickson.com regularly for up to date market information.

Displaying blog entries 1-2 of 2

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Photo of Connie Erickson Real Estate
Connie Erickson
Door County Realty, Inc.
Po Box 340 - 4027 Main Street
Fish Creek WI 54212
Office: 920-868-2075
Toll Free: 888-678-3949
Fax: 920-868-2425

Integrity...Trust...Service...Excellence
These Are Connie Erickson's Core Values

RESULTS WITH INTEGRITY
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