Most likely, in order to purchase your new home you
will need to work with a lender. Before sifting through
the various lenders in the phone book, you may want
to briefly discuss your financial situation and goals
with your Realtor as this information will aid in choosing
a lender. Since lenders typically market their loan
programs to Realtors, your Realtor will have the best
knowledge of all the available lending programs. It's
a lot easier than hitting the phone book and independently
tracking down the right loan program..
Your realtor will most likely connect you with a mortgage
originator (a.k.a. loan officer, mortgage specialist,
- there's actually a ton of names for this position)
but their job is to locate families who are interested
in obtaining a loan. Essentially, the mortgage originator's
position is not unlike that of a sales person's position
for any other company. The bank makes its money by creating
loans, and somebody has to find the business.........thus
the mortgage originator.
Basically, the pre-qualification process involves calculating
your debt to income ratio. Your income versus your debt
is punched into a calculator and the final number that
pops out is an approximate amount that the financial
institution is willing to lend you. The financial
calculator in the mortgage center can provide you
with a heads up on this number. However, it may be wise
to have your mortgage originator complete a final calculation
instead of using the calculators on the site. Typically,
site users "adjust" the numbers a bit, which
provides an inaccurate total. Requesting that your mortgage
originator complete a pre-qualification calculation,
solidifies the total a bit more. Note that most financial
institutions do not charge anything for calculating
your debt to income ratio.
Up to this point, the only thing that you've done is
complete some basic "research". You may have
an idea as to how much home you can afford, and what
your monthly payments may be.......but you DO NOT have
a loan, yet. For that, we need to progress to the next
step.......
page 2 of 6
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