The first step a home buyer should take is to get pre-qualified or pre-approved for financing. When doing this, all potential buyers should take a good look at their financial situation before embarking on home ownership. While upfront prices may be low, the month-to-month costs of home ownership can add up. Income, credit rating, and current monthly expenses should all be taken into account when determining how much can be spent on a new home.
Visiting a direct lender (a bank) versus a mortgage broker is the best way to get an accurate budget for a home purchase and to determine the best available loan package. Direct lenders typically do their own underwriting and have complete control of the financing process from application to loan approval. While mortgage brokers are a middle man with whom you fill out an application and then the mortgage broker will shop the loan package to bigger lenders. The actual lender may in turn have a whole additional set of application questions you will be required to address and may occasionally change the terms of the mortgage.
Obtaining pre-qualification or pre-approval accomplishes many things: it ensures that you obtain a mortgage payment you desire; allows you to concentrate on the correct price range; and typically a pre-qualification or pre-approval letter is required to submit an offer on your dream home.
As always, your thoughts, questions, or comments are greatly appreciated. Let me know if I can help with any of your Charleston, SC real estate needs or questions.
Sincerely,
"Carolina Joe" Idleman
http://www.carolinajoe.com
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