Buy Columbus Ohio Real Estate
I know that between work, family, and other life obligations it can be difficult to set aside time for learning how to buy Columbus Ohio real estate. My schedule is generally flexible and I’ll do my best to not only work around yours, but also help narrow down the list ahead of time so that we don’t spend a day visiting places that won’t be a fit. I like to be efficient. If we walk into a house and you know this is not where you want to call home, this will not hurt my feelings. Let’s move on. If you love it, we can stay for as long as you like. My network of inspectors and lenders is top-notch. These are important pieces to the puzzle of buying a home. If you’re just starting out, you may want to play around with a mortgage calculator to get an idea of what you can afford – but in my opinion it’s always best to speak with a lender or mortgage representative. You want to be prepared to make an offer if your dream home comes on the market, not scrambling to get paperwork in line for a pre-approval.
PRE-APPROVAL VS. PRE-QUALIFICATION
Getting pre-approved by a mortgage lender for buying Columbus Ohio real estate is an important step for serious buyers and gives you an edge in terms of bargaining power. A pre-approved mortgage means that, although you don’t have the money in your hand yet, your bank or lender has guaranteed that you will be approved when you do apply. To get pre-approved, you have to submit your financial information to your lender, such as your monthly income and records of your outstanding debts (this will require a credit check), so the lender can check your debt-to-income ratio. If you are pre-approved, the lender will give you a letter, which you can show to the seller as proof of your creditworthiness. A pre-approved mortgage is an important asset for homebuyers because it may motivate a seller to take a lower price or enter into a contract with you. Without a pre-approved mortgage, your offer to buy a home will be “loan contingent.” That is, if you can’t get financing, the contract falls through and the seller has to start all over. When it comes between choosing an offer that is loan contingent and one from a buyer with a pre-approved mortgage, it makes more sense to go with the latter. Plus, on your end, being pre-approved expedites the loan application process since you’ll have most of the paperwork taken care of already. While it’s important to get pre-approved for a mortgage, it’s also critical that you do so when you’re seriously looking to buy a home. Because the market may change or your financial picture may change — your credit score could dip or you could lose your job — mortgage pre-approvals are only valid for a certain amount of time. And in most cases, you’ll have to pay to lock in your mortgage interest rate, which is something you don’t want to have to do over and over. If you just want to see how much house you can afford, you can get pre-qualified instead. Pre-qualification is different from pre-approval, as it’s merely an assessment of how much you can likely afford based on unverified, self-reported financial data. Pre-qualification from a bank isn’t a guarantee that you’ll be approved for a mortgage, thus is only helpful as a tool for your own home buying search. Pre-qualification usually doesn’t give you any leverage in a bidding war. So, remember, when it comes to a pre-approved mortgage vs. pre-qualified mortgage, a pre-qualified mortgage isn’t a guarantee, but will help you narrow down your choices in terms of price range. A pre-approved mortgage is a time-sensitive guarantee from your bank that shows sellers that you can get financing and move towards closing quickly.
WHAT WILL I NEED TO GET A LOAN?
When it comes to the loan process, there are several steps that one must go through. By making yourself familiar with it, you will better understand what is required of you and how you need to prepare. After all, the more knowledgeable you become the more comfortable and in control you’ll feel.
1. Organize Your Documents
In order to buy Columbus Ohio real estate, your lender will require certain documentation from you to make sure that you will have the ability to repay the loan you take out. Such documentation includes proof of employment, credit history, tax returns, pay stubs, bank statements, divorce and child support statements if applicable, and any other information that the lending company feels might be necessary.
Before you apply for a loan for Columbus Ohio real estate, getting qualified will help you establish how much you can borrow. When purchasing a home, there are two options one may choose from to qualify for a loan. The first option, pre-qualification, is a quick process that usually happens in a matter of minutes. While pre-qualification is helpful, your other option – pre-approval – is more beneficial and gives you better leverage when negotiating with the seller. Getting pre-approved also lets you focus on homes within your price range instead of wasting time looking at homes that you won’t be able to afford. Finally, when it comes time to close, the process will go rather quickly since your loan has already been approved.
3. Find the Right Loan Program
While searching for the right loan program, there are many things to take into consideration. For example, you might want to think about how long you plan on keeping the loan. The length of your residence will determine the type of loan you want to get (i.e. adjustable or fixed). To figure out which loan program is the best, one will need to compare different programs and everything that each one involves such as rates, fees and points. The whole process can be tedious and difficult at times, which is why a qualified loan officer can help you make the right decision.
4. Obtain Loan Approval
The process of obtaining loan approval involves the following steps:
- Review of loan application (Be sure to fill it out completely).
- Verification of credit history, employment history, assets such as bank accounts and mutual funds, property value and any additional information that the lender might require.
There are also a few things that you can do to improve your chances of getting the loan for your Columbus Ohio real estate approved.
- For any requests of additional documents and information, respond promptly.
- Do not make any major purchases such as a car or new furniture until the loan is closed. Increasing your debt can have the opposite effect on your application.
- Make sure you will be in town for the closing date. If you cannot be there for the closing of the loan, you can carry out a power of attorney to authorize someone to sign on your behalf.
5. Close the Loan
Once the loan for your Columbus Ohio real estate is approved, your next step will be to sign the final loan documents, which usually takes place in the presence of a notary public. Be sure to verify the information within the document, especially the interest rate and loan terms. Also check to see if your name and address are correct. Finally, don’t forget to bring a cashier’s check for your down payment and closing costs.