In the current economic climate, being approved for a mortgage can be a confusing process but it really does not have to be. A lender will give guidance to a borrower. The lender can provide basic information about different loan options and government programs available and help a borrower to find the right mortgage, how to properly apply, and how to navigate the volume of paperwork and information required for accessing a home mortgage loan. We have resource information for borrowers about several lenders who can provide this guidance to lenders.
One of the best steps to take would be to get pre-approved for a mortgage. Being pre-approved does not mean that all the steps to acquire the loan are completed in advance. Rather, it can be considered an initial screening designed to guide you towards those loans which you qualify for. Being pre-approved through a preliminary application will definitely save you time and effort and will tell you how much home you can qualify for so you don’t start looking for homes that are out of your price range. It also brings peace of mind to the seller when you make an offer. It lends credibility to your offer and tells the seller you are already backed by a bank, so they feel more confident in accepting an offer from a buyer who is pre-approved than one who is not.
Types of Home Mortgage Loans
Not all home mortgage loans are the same and there are several different categories of mortgages you can apply for.
Government Home Mortgage Loans
There are special loan categories which are backed by the government. The most common categories of these loans are:
Which Loan Is the Right One?
Prior to selecting any loan, you need to ask yourself some questions about which loan is best for you. It is very important to have a good Loan Officer to help guide you through this process. They will be able to help you look at your budget, determine a reasonable amount you can afford, answer any questions about each type of loan and guide you to the best mortgage that will fit your needs.
Some common questions to ask include:
Make the Process Quicker
No matter what loan you decide on, you want to be sure that you facilitate the loan approval in the quickest manner. Ways to do this can include improving your FICO score to gain access to better interest rates, putting money aside for a down payment, and getting all required loan documents in order prior to applying. Here is a handy guide to some quick ways to Boost your Credit Score in Months.
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