In the mortgage financing world, there are so many different terms and options, it can be confusing. One of the terms that people tend to regularly come across is guaranteed mortgage financing. But what does it really mean?
Well, the answer is actually quite simple. All it means is that you have your financing in place before you look for a home. In other words, your home loan is considered to be pre-approved.
Can Being Pre-Approved Help Me Buy a House?
While it is not completely necessary to have your mortgage financing guaranteed before you settle on a house, being pre-approved will make the entire process go a lot smoother. You already have a lender all set up and ready to go, with a dollar amount in mind. This way, when you go to look for houses, you can stay within the already agreed upon price range.
By walking into a house with a pre-approval letter, you are also giving the sellers a little bit of peace of mind. When your financing is guaranteed, the sellers know that you are serious about being ready to buy a home and can seriously consider whatever offer you put in front of them.
When you find the perfect home, something in your gut just tells you it’s right. By getting pre-approved, you can make an offer on the home, and know the money is there, instantly. You don’t have to wait around for the lender to think on it and potentially miss out on your dream home.
How Do I Get Guaranteed Mortgage Financing?
Getting pre-approved for your home loan is actually one of the easier parts of buying a house. You simply have to speak to your lender or bank and talk to them. They will ask you questions about your income, work, and the price point you can also afford to pay. Some of them may also check your credit score.
On your letter, it should say the dollar amount for which you qualify, and the interest rate the money will be lent to you. Make sure you do your homework to make sure that you are getting the absolute best interest rate. This could mean calling several banks and private lenders in order to get the best deal.
Another way to get pre-approval letter is to go through a mortgage broker. A broker will do all of the dirty work for you. They will call around and get you the absolute best possible rates on your home loan. The best part is that it usually costs you absolutely nothing, because they get a commission from the lender.
If you’re ready to take the plunge into owning your own home, be sure to contact Steven Owens at www.mymortgagebroker.com or by calling 403-870-2669. He can help get you pre-approved and answer any questions you may have along the way.