As the world rushes at a frantic pace, folks often take major buying decisions without giving much thought to the imperative factors and afterward face the disastrous and unbearable loss. Among the biggest purchase, you can have in your life is “building a home.” If it is the very first time, you are thinking of going through this process, you should keep in mind a few instructions before applying for a mortgage.
Skim through a few tips and guidelines for the first time homebuyers:
Steps in the Mortgage Loan Process:
The initial thing to consider is where you need to begin. A loan process for a house may seem a bit confusing and might even feel a little overwhelming sometimes. Just keep in mind for each step you can get mortgage experts involved to navigate the way in order to help you through your house buying experience. In this article, we will walk you through different scenarios and you can pick the best scenario as per your current financial needs.
The key step in applying for a loan is to get it approved beforehand by a mortgage lender. Now there are two ways of getting it approved beforehand, the first one being pre-qualification; the second is pre-approval and there is a big difference between both of these. Being pre-qualified, the mortgage lender will pull your credit report and review it. On the other hand, being pre-approved, they pull and review your credit report, but they need you to give them the supporting documents.
Therefore, this means that being pre-approved is a lot better than pre-qualification and a complete loan process may go like loan application, loan set up, processing, underwriting, conditional approval/loan approval, closing/funding. As you are going through these processes, you must consider that the lowest rate of interest might not always make a good financial report.
Think through the time and the annual percentage rate but the annual percentage rate does not always give you the complete picture, find out if the fees are reasonable and what exactly the loan will cost you.
Top tips for the first-time buyers:
When it comes to mortgages, you must know that an interest rate is not the indicator of the actual price, as you can have two mortgages with the same rate and they could be entirely different as far as their features go.
Another great thing is portability and when you decide to move you have to know whether your mortgage can be moved or not. If it can be moved to your new location, you should consider the payment, penalty, and lender stability.
Financing the custom Log or Timber Frame Homes:
Finding a loan officer or construction lender for your log home construction is essential. It is about finding a partner who you can trust, looking around, and comparing lenders as they have different limitations. Consider your house insurance as your log home will be insured differently than other conventional houses.
While getting a mortgage you should first keep in mind how the construction of your log home will take place, as there are different methods of construction of log homes. Do your homework and opt for the trusted ones, as the prerequisites for construction loans are different from the conventional constructions. For that reason, a well-reputed design company that is specialized for designing and the customs planning of log homes, hybrids, and timber frames. Whether it is a plan for a simple log cabin or a luxurious timber frame home, they can make a custom Home Design to meet your budget and desires. You can visit www.streamlinedesign.ca yourself and know more details about this firm. They take pride in converting the vision of the customers into reality. Just fill out the “contact us” form on this website and one of their representatives will get back to you.