Getting ready to buy a home can be one of the most exciting times of your life. Finding the perfect property is probably the first thing on your mind. But, before you get too caught up in finding a home with a two car garage and double ovens, make sure that you have researched mortgage companies in Baton Rouge, Louisiana.
What is A Mortgage Company?
A mortgage company is a business that works with lenders to provide a buyer with a loan. Unless you are planning on paying cash for your dream home, you will be taking out a loan on the home. It is important that before you begin your house search, you research different companies and find out what type of loans you qualify for, and what their corresponding interest rates and costs will be. Whether it is a loan with 0% down or a loan with a lower interest rate, knowing what your payment requirements will be each month is a necessity.
Preapproval? What is that?
You found your dream home and now you want to make an offer to purchase it. If you send over an offer to the seller, odds are they are going to ask for a preapproval letter before even considering what you are offering. A preapproval letter is a letter from the mortgage company that declares you have been found worthy of receiving a loan the amount you have offered. This ensures the seller that you are a serious buyer. A seller does not want to tie up his or her property with a buyer who can’t even qualify for the loan amount they have offered. The lenders typically look at all three of your credit reports and scores, which take into consideration your debt-to-income ratio, as well as your gross income, in order to determine how much money they will lend to you. Getting a preapproval letter from your mortgage company is easy and can typically be done very quickly.
Your dream home is almost within reach. The home inspection and appraisal are finished and all that is left is working with your mortgage company to get your loan finalized. Although you know what your monthly payments are going to be, make sure you are aware that there are closing costs that will need to be paid at the closing. These fees vary quite a bit and are influenced by taxes, appraisal fees, and insurance costs. Often these fees are part of negotiations and can be paid by the seller if all parties agree to that. Make sure you do your homework and research qualified mortgage companies in Baton Rouge, Louisiana before selecting the right one.