Owning a house even when you have no ready cash is now possible thanks to the mortgage arrangements. However, this being a very big financial transaction to undertake, you must be sure to do it the right way. There are obviously rules and regulations to be followed but this should not discourage you because it is to your benefits at the end of it all. Before you can get to your real estate agent to enquire about your dream home and have him or her represent you in the negotiation process, you must ensure that you are pre-approved by the lenders. This is different from pre-qualified and so you must be sure you are pre-approved. When we talk about being pre-approved, we mean that you are sure that the lender is ready to give you the money and chances of cancelling the deal are minimal. On the other hand, being pre-qualified means that the lender has only estimated what you could borrow and this does not mean that he or she must give you the loan. There is no agreement yet so you are not sure o the amount you can get. Being pre-approved will help you select a house you can afford because you are sure of the amount you are getting. It also acts as an assurance to the real estate agent that your deal will be fulfilled.
Why do you have to look for a mortgage before getting a house?
This may appear unrealistic but it is a sure way to help you be clear about what you need. It is no better to fall head over heels in love with a house yet you cannot afford it in the end. That will only be a disappointment to you. You will need to determine whether a house is within your price range or not.
How to proceed after qualifying for a mortgage
Once you are sure of a mortgage, you can proceed to get a program that suits you. First-time buyers’ programs may be the best options to look out for because in most cases their down payment requirement is usually lower. The next step is to look for a lawyer. You can never be sure that things will go as you expect. You may choose to or not to involve a lawyer but it is safer when you have one. The lawyer must be honest, reputable and cheap. Then you can go ahead to have your agent look out for a house for you. You will also need to get involved in the search so as to identify what it is you really need. Probably you care about a good neighborhood and so this will determine the house of your choice. What are your future plans? Are you looking for a house when you are single? Will you marry? What of your children? Are there good schools around? What about the backyard? These are the things that you need to think of when choosing on the house of you want to buy. You must choose your preferences right.
To ensure that you do not end up spending more than you could, it is advisable not to fall in love with one house. This is because you will end up picking on it just because you are emotionally attached to it and so you are ready to pay any amount of money. The seller may take advantage of this when he or she happens to notice your attachment. When taking loans, you can secure yourself by use of a trust deed. A trust deed expert can guide you on this.