Wedding planners will tell you, to have a successful wedding it’s important to begin the planning process months in advance of your special day.
Preparing for the next phase of your life together – Homeownership – is not much different. In fact, home buying experts suggest that in order to have a successful home purchase would-be homebuyers should begin the home qualifying process at least 3-6 months in advance of their purchase.
To prepare for your upcoming New Jersey home purchase;
- Schedule a telephone or in-person interview with a lending professional and complete a preliminary review of your qualifications. Keep in mind at this stage of the process you are not shopping interest rate. Instead, the purpose here is to find a knowledgeable lending partner that you are comfortable with and let him or her review your home buying strengths …and possible weaknesses. If any weaknesses arise, your lending partner should be able to provide you with a roadmap on how to improve your qualifications for a future purchase.
- Explore all your options. Too often first-time buyers make the mistake of searching for a specific loan, like an FHA loan, simply because their friend or co-worker suggested it. Instead, ask your lender to provide you with all the loan programs that fall within your qualifications. That way you can select the option that’s right for you.
- Gather necessary paperwork and set it aside for when you are ready to apply for your loan. This includes Federal Tax Returns, W2’s, Paystubs, Bank Statements, or whatever your lender advises that you will need for a full approval. That way you can move quickly once you locate the right home.
- Take your loan qualifications to the next level by asking your lender to process your paperwork for a Full Loan Approval. Unlike the initial review or a pre-approval, a Full Loan Approval brings you closer to a loan guarantee. This will not only provide you with piece of mind, but may strengthen your offer when bidding on a home. Sellers find great comfort in knowing your loan is nearly guaranteed.
- Stay focused at the task at hand. Too often newlyweds become distracted and assume mortgage rates and home prices will remain at current levels. Nothing can be further from the truth. With home prices and mortgage rates expected to rise, chances are the same home a year from now will become more expensive to own.
With the right preparation and home buying team behind you, reaching your goal of homeownership is just around the corner.
This article was written by Joseph Farella, Executive Vice President of American United Mortgage Corporation and author of “Insider secrets to Home Buying Success”. For questions about the home buying process here in New Jersey, email firstname.lastname@example.org or call 908.322.5423.