ˆThe decision to buy a home has probably crossed your mind and you are ready to get that house hunting started. Before you start hunting the internet for your dream home and scheduling a visit, you need to get a loan in Cherry Hill.
To get your pre-approval, here’s what you need to do to get a loan in Cherry Hill:
CHECK YOUR CREDIT SCORES
Before you start looking for a lender you might want to get an idea of where you stand and see what changes you can make to improve your score. You can check your score using Credit Karma (They provide a free credit report from each of the three major credit reporting groups – Experian, Equifax, and TransUnion) and see the full picture, make changes if any false information is found, and strengthen your score. If you’ve got a credit score above 720, you qualify for better interest rates. Your score will get you a better deal. By reviewing it all in advance you can save yourself a pretty penny by paying less.
GATHER ALL YOUR DOCUMENTS
Regardless of which traditional bank, credit union, or mortgage lender, you’ll need to provide a ton of financial information when applying for your loan.
Key documents to have handy:
All of this documentation will have to be provided to your lender during the pre-approval process. Oftentimes, you think you got everything they needed and they ask for another document. Totally normal.
GET PRE-QUALIFIED
This is often the first step in the mortgaging process. It doesn’t require strict proof of income, but many people use it as a starting point when searching for a home.
In the pre-qualification process, the lender will interview you about your income, assets, and expenses. A pre-qualification isn’t official and in a multiple offer situation, you will more than likely be ignored. All it does is help you get a better idea of how much loan you can afford.
This process may be easier for you but ultimately, will harm you. That’s because things change when you run a pre-approval and what home sellers would want to deal with surprises when they can have something closer to the sure thing.
SECURE PRE-APPROVAL
The best step to finally get a loan in Cherry Hill, New Jersey is the pre-approval. My one true love as a Realtor. That’s because when sellers see it, they know you’re serious and their mind is further at ease. . They know you’ve been checked. I know you are in a better position to win your dream house.
To secure a pre-approval, you will need to provide documentation – proof of income, proof of assets, and identifying information – to the lender. THEN the lender pulls your credit report and uses all of the information to determine if and how you qualify. Meaning, how much you can afford and how YOUR interest rate affects your purchasing power!
With this kind of information, you are confident that so surprises are coming. You know what a specific home will cost you every month so you can feel comfortable knowing the number. Because it matters. I don’t want you drowning just to have a home. We need to make sure things make sense. As a top realtor that is what my job is. To guide you and point you in the right direction.
GET COMMITMENT
Now that you have your pre-approval in hand and we have found your dream home, got an accepted offer on the home, your lender will assess that home’s value.
Once they have had a chance to send out an appraiser and everything looks good your lender issues an official commitment to lend you a sum of money at a specific interest rate which gets locked. Sometimes there are financial issues and they creep up last minute, which is another reason why working with a lender that local real estate agents trust is important. If you need a recommendation, feel free to speak with us.
Once you receive this approval, you’re on your way to moving into your new home! Congrats!
If you have any other questions Omry Gottlib and the Gott Real Estate Team, Realtors at REMAX are always available to assist.
Learn about our Selling or Buying process and get prepared.
Give us a call anytime at 929-777-5185 or
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