The home buying process can be complicated, as it’s composed of a variety of factors that need to be analyzed carefully. This includes the mortgage, most commonly referred to as a home loan. Various mortgage companies are across California, all ready to provide you with services. Before saying “yes” to any of them, however, you must first understand the process.

Understanding the process allows you to enter a contract that is better for you and your resources, and it also helps you assess if a broker can cater to your needs and preferences. Learning what happens during the sales process and closing, and any risks and pitfalls that you may unknowingly wander in, will help you a lot.

Things to Avoid During Home Purchase Process

For these reasons, preparation is key. It’s the blueprint for your dream home.  To help you fully plan, we’ve curated a list of some things that could potentially harm your progress. Take a look at these crucial elements to avoid at all costs:

1. Shopping around without a pre-approval. If you begin looking around for homes without a pre-approval, you’ll likely either end up with a less than desirable home or perhaps go over budget. The pre-approval process has been designed to help homebuyers set a budget, allowing them to adjust expectations accordingly. Falling in love with a property beyond your means is always a trap and can potentially ruin your financial security in the long run. With a pre-approved mortgage, you know exactly what to expect and gauge, ultimately helping you narrow down the path towards the right home.
2. Engaging in big purchases. Making big purchases, such as a new car, can drastically affect your budget means. It’s not always easy to shell out huge sums of money for investments and doing so for a car and other high ticket items can lead to undesirable consequences. You can end up accumulating more debts possibly causing you to get rejected for your mortgage. Big purchases can also affect your overall credit score and rating, leading to negative consequences. You risk your mortgage application, either reducing your chances of getting a low-interest rate, or perhaps losing the option altogether. Golden tip: If it’s truly necessary to make a large purchase before your home purchase, make sure to plan for it accordingly. You’ll want to have full control over it, particularly since you need to think of long-term expenses.
3. Refusing to enlist the help of experts. While it can be incredibly tempting to do so, never attempt to do everything by yourself. You may feel like it’s worth a little less to avoid any form of assistance, but this will only cost you more in the long run. In the chaos of it all, you can easily miss crucial documents, fail to respond to requests, and so much more. Such mistakes can be costly in the long run, potentially leading to you miss out on your dream home. When it comes to the real estate market, time is always of the essence. With the help of professionals, you’ll be able to enjoy a smooth and convenient process—every step of the way.

Work with the Best Mortgage Lender in Roseville

The home buying process can be complicated, but with ample research and preparation, you’ll be able to properly protect yourself against potential pitfalls. This includes financial mistakes like big purchases, failing to get pre-approved, and of course, believing you don’t need the help of experts.

To make sure that you enjoy a smooth transaction, Steelman Mortgages is ready to help. We offer you the best possible home loans in Roseville, guaranteed to bring you one step closer to your dreams. Contact us today at (916) 847-7263 to learn more.

One of the biggest purchases anyone can make is a house that will turn into a home. Chances are, however, that you will need to finance the investment with a home loan. A big advantage when hunting for a house can come in the form of mortgage preapproval; in some ways, it is practically a rite of passage that launches the long process of property purchase.

Here is what you need to know about mortgage preapprovals:

What is a Mortgage Preapproval?

A mortgage preapproval is a document or letter that declares exactly how much a lender is willing to lend you so you can pay for the house you are buying. It is a crucial step in the process of buying a home.

Whether you’re a first-time home buyer in Roseville or you have done this before, the preapproval process will be the first piece of the puzzle. Knowing how much you can afford allows you to look for properties within that price range rather than waste time with homes that are out of budget.

Once you have narrowed the list of potential properties down to a few top contenders, it will be time to extend offers. Sellers will be able to see that you have already been vetted by a lender and will thus be able to pay them for the property. That estimate can be used by real estate agents and sellers alike, in order to figure out whether or not you are indeed a serious contender for a house.

How Do Lenders Determine an Amount?

The foundation of preapproval lies directly within your financial situation. Lenders will look into your credit with a hard inquiry in order to determine just how worthy you are of credit. They will request your bank statements and retirement statements to assess how much you have in your bank account. They will request your paystubs and your federal tax returns to check on your income.  These 3 items are the main requirements of getting a preapproval letter.

With the information provided, lenders will then be able to calculate a rather fair estimate as to just how much you can afford in terms of buying a house. They will then have the option of preapproving you for a loan amount based on your situation.

Being preapproved by a lender means you have been pre-underwritten and can go shopping for a property. Of course, if your financial situation drastically changes during your search for a home to buy, there is a possibility that your preapproval will get affected.

What are the Benefits of Being Preapproved?

A key benefit of preapproval is that sellers as well as real estate agents will have a clear sign that you are very serious about making a purchase. Moreover, they will be able to tell that you can actually afford the house you are trying to purchase. When you have Interest in a house that moves and you want to make an offer, the pre-approval letter makes your offer stronger than without it.  The seller and the realtor will want to make sure that you can actually pay for it and follow through.

When you are able to get a clearer picture of what you can qualify for, what your monthly payment will be and what cash to close will be required; this will help you to decide what price range you can qualify for and want to stay within. 

Not having a preapproval could mean that someone who has a lender and a preapproval will be favored over you.

Get Preapproved in Roseville with Steelman Mortgages

Preapproval plays a vital role in being able to buy your new house. Submit the necessary documents and go through the credit check, then go ahead and start your home buying journey! For best results, it is likely best to seek professional guidance on mortgages.

Looking for a mortgage lender in Roseville? Contact Steelman Mortgages at (916) 847-7263! We can’t wait to help you whether you’re a first-time home buyer or someone looking into reverse mortgage and other similar needs.