When you’re ready to buy a house, chances are you’ll need to secure financing first. So, unless you have a hefty sum of cash, you’ll need to enlist the help of a mortgage company.
“What is a mortgage company,” you ask? We’re here to answer all the questions about the mortgage process that you need to know.
Let’s look into how these companies can help you secure financing for the home of your dreams, help you stand out among other prospective buyers and alleviate some of the stress that comes with buying your first home.
What Is a Mortgage Company Exactly?
If you’ve never bought a home before you probably don’t know how the process works and what to expect. A mortgage company is your first step in the process of home buying. Before you start talking to realtors or start scoping out homes, you’ll want to make a call to a mortgage company or broker.
Mortgage companies are in the business of servicing mortgage loans. It can be a credit union, bank or other financial institution. Here’s a breakdown of what they will do for you.
Determine How Much House You Can Afford
This is why you need to talk to a mortgage company before calling a realtor. Your lender will look at your income, assets, credit score and debt-to-income ratio (DTI).
They’ll use this information to determine the maximum amount that you can afford. Once you have this information you can find the perfect realtor and get started on the fun part–looking for your dream house.
Give You a Preapproval Letter
There’s one thing that sets apart serious buyers from those who are just looking–that’s the preapproval letter.
This letter shows your realtor and the seller that you not only want the house but that you can afford it. This means if you put an offer down backed with your preapproval letter, your offer is more likely to be accepted than someone without this coveted letter.
Guide You in the Home Buying Process
Homebuying has a lot of steps, and it can be a stressful process. Your mortgage company is there to guide you through this journey and make sure you stay on track to get final approval on your loan.
This happens at the very end of the process after the offer has been accepted and the appraisal has been completed and any conditions have been met. your company or broker will be there to answer any questions you have. You may even find yourself wondering how they stay so on top of the process. The best CRM for mortgage brokers helps them help you.
Getting the clear to close shows that you have made it to the end and can soon schedule your closing day…and get those keys in hand.
Get Started on Your Home Buying Journey Today
Now that we’ve answered the question, “what is a mortgage company,” you may be ready to get started on the process.
To find out if a new house is in store for you in the new year, make your first call to a mortgage company and find out what you qualify for.
Check out the rest of our blog for more tips on the home buying process and start getting prepared today.