KNOW-HOW TO PREPARE YOUR FIRST MORTGAGE?
There is no place quite like Miami, with the beautiful beaches, great weather, historical sites, and unique attractions, it has something for everyone.
With its diversity and opportunities, Miami has witnessed a significant growth of homebuyers looking for different loan options.
If you are planning to get finance for your dream home for the first time, you will come across many products that may fit your current situation.
Let’s have a closer look at Miami’s real estate market and know how you can prepare for your first-time mortgage.
5 Things To Do While Preparing For Your First Mortgage:
As complicated as it may sound, you will need to keep these six things in mind while preparing for your first mortgage
- Evaluate Your Credit:
While applying for a mortgage, the most important thing is your Credit score and history. Every lender has a minimum credit score requirements, and it plays a crucial role in the loan approval.
If your credit score doesn’t meet the criteria, you may need to improve it before applying for the mortgage.
- Get Your Documents In Place:
To save time while applying for a mortgage, it is a good idea to have all the documents required ready. Every mortgage program has different requirements, but in general, your W2s, id proof, bank statement, and tax return may be mandatory.
Getting a pre-approval from the lender is the best practice as it will make the process faster. You can ask the lender for the quote to escalate your home search process. Once you receive the quote, review it, and complete the pre-approval process.
- Find a Home and Make an Ofer:
Finding a home in Miami will not be a challenge if you hire the right real estate agent who can help you find the house that fits your budget.
Once you find the ideal property, it is time to make an offer based on the pre-approval you received from your lender.
- Complete Loan Application and Underwriting:
Once you finalize the property, you will need to complete the loan application along with your lender, who will help you to finish it.
After the application is complete, your lender’s underwriting department will review it, and he may ask you questions or might need additional documents. To speed up the process, keep all the documents ready.
Once they finish the review, your lender will notify you if the loan is approved. That’s it! Once your loan is approved, you will need to pay the down payment before your move-in.
The steps are easier said than done but don’t worry, everyone goes through these processes. Keep your communication with your agent and the lender open.
Various Mortgage Options:
There are several mortgage options to choose from, with different criteria for approval. As you are buying a home for the first time, it is advisable to consult with your agent to know the ideal loan for you.
If you have a higher credit score, you can apply for a Conventional loan. To apply for an FHA loan, you need a credit score of 580 or higher. A self-employed can apply for a Bank Statement loan whereas, a non-US national can apply for the Foreign National Mortgage program.
With all the points, your first mortgage experience will be worth it, if you carefully take time to evaluate all the options and find the best mortgage as with multiple lenders.
Remember a small change in the interest rates can save you a lot of dollars