Getting Your Finances in Order real estate mortgage loan real estate lendin

It's not usually the first thing that comes to someone's mind when thinking about buying a house, but a real estate mortgage loan should be your first stop and is usually the biggest hurtle when it comes to home buying.  One of the first things we ask our clients is if they have a pre-qualification yet.  Nine times out of ten the answer is "no" or "not yet", when in fact that is the point where you should start your journey.  

A pre-qualification is the best place to start in real estate lending because it gives your agent a source of vital information about your home buying path.  It tells them if you are using a Conventional loan, FHA loan, USDA loan or a VA loan or others.  Each loan has its own criteria that forces you to fit in "the box" which outlines that specific loan product, and which makes it right for you and your financial wants and needs.  Depending on the loan type you seek or qualify for will give the agent an idea of areas, price-point, building condition, etc. they should be searching for. 

Your agent can make suggestions for mortgage loan originators that they have experience working with; however, it is completely up to you who you choose to work with.  Once you have the pre-qualification in your hands, make sure to send that document to your real estate professional as they may need it just to get you into some showings.  Some sellers may require a pre-qualification to be presented at time of showing appointment scheduling in order to view their property, which is completely their right to ask for, if they so choose. Another good reason to have your pre-qualification handy is after scouring several properties and you finally find the one you really to buy, you want to move on it quickly, so you'll need that document for your agent to present to the listing agent or seller as a part of your purchase offer. 

Once you choose a lender to work with, they will ask you for financial statements, W-2 documents and other personal information so it is best to try to have those items organized and ready to go ahead of your meeting with them to save time.   Usually getting a thorough pre-qualification only takes a day or two but can be as quick as having the letter within an hour or so.