New to Real Estate? 5 Tips on Mortgages

In the Raleigh real estate market, home sales are trending upwards.  In August of 2013, the average number of days on the market was 70.  Last year at this time, it was 110!  With the mortgage rates still fairly low and decent inventory on the market, people are deciding that now is the time to buy and the next step would be to apply for a mortgage loan.

This is an area where you should know a few tips before you walk in the door.  As this is the largest purchase most will make, here are 5 tips that will help you before you sign on the dotted line:

1. Go ahead and get pre-approved.  There is a major difference in getting pre-qualified and pre-approved.  The pre-approval process goes through the credit check and looks at your financial background to really confirm the amount you would be approved for.  This is important during the buying process because delivering a pre-approval letter with your offer lets the seller know you serious.  This also helps brokers understand what price range their clients needs to be in.

2. Just because you are pre-approved does not mean that is your mortgage all set and in the bag.  Once you put in your offer and go under contract, your lender will check your credit again.  During the house-hunting process, it helps if you avoid major purchases like buying a new car or taking out a new credit card.

3. Work with your lender for loan options as there are some out there that might work for you and your situation.

4. Your income level is only 1 piece of the pie.  Lenders also look at other debt you have and if it’s a high amount, that could limit the amount you are approved for.

If you know anyone looking to buy or sell in the Raleigh area, please let me know and I would be happy to consult!


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