Nobody expects the Spanish Inquisition…

Second in a series of six things you should do if you want to buy or sell a home in 2012!

#2 Qualify it:

Nobody expects the Spanish Inquisition…but thankfully with a little preparation qualifying for a mortgage loan will be a little less foreboding and answering a mortgage lender’s questions is not likely to get you burned at the stake!

You’d think with the lowest mortgage rates since Walt Disney released Cinderella (the original) qualifying for a home would be a cinch…and quick too. Think again! (The average rate on the 30-year fixed mortgage dipped below 4% to 3.94 percent.) Cinderella was released in 1950!

Here’s the thing….you can do this, you can qualify – lenders need to lend, sellers hope to sell and buyers want to buy. The key is do the work on the front end…you know when you (more likely your spouse) start thinking about maybe, possibly buying a new home right THEN is the time to TALK TO A LENDER! Some thoughts from our friend and mortgage guru Terry Stutts**…

Even thinking about buying a home the first thing you need to do is talk with a qualified lender and get prequalified for a home loan. By understanding what price range you are qualified for, you can focus on that price range and style of home that best suits your comfort zone.You dont want to find your $250,000 dream home turns out to be an “only qualified for $210,000” nightmare! (folks it happens every day).

With a short conversation your lender you can prequalify you and begin tailoring a loan program to fit your lifestyle and budget. Did you know, the offer-to-purchase contracts requires a prequalification letter from a lender to accompany the contract?

To prequalify for a home loan you will need to supply some personal information to your lender, including information about your employment (self employed adds a hurdle), your income, your assets and if you own or rent currently. Credit checks are a given and more people than you think are surprised to a find credit score might set your homebuying plans back months or even a year.

The good news is working with a reputable mortgage professional and a good Realtor even in the most challenging of cases where there is a will there is a way to buy that home! This is not the time to go it alone…work with the pros, the good ones are worth every penny!
And remember rule number one: Get started on the process early!

Have a question ask Terry Stutts – Senior Loan Officer W.R. Starkey Mortgage 704-821-4115

You don’t want to mess with these guys…ad chekc out #1 in our series Don’t Sweat it: