Take the steps necessary to get a letter from the lender stating you are "pre-approved" for a loan in a specific price range. It's important to have this letter before you make a contract offer to buy real estate. Once you're pre-approved, you know what price range of homes you should be looking at.
As a Top Real Estate Broker Selling New Jersey Real Estate, Diane can refer you excellent Mortgage contacts for all your financing needs !
A lender can help you understand the different financing options available and can recommend the reputable lenders in best suited to your financial position and the property you wish to buy.
There are two basic categories of mortgages: the fixed-rate and the adjustable-rate mortgage. Within these categories, there are many variations.
This type of mortgage begins with a higher initial mortgage payment, with the trade-off that all future payments remain consistent and predictable. The interest rate on the loan does not change, making budgeting and planning for this type of mortgage simpler and less risky.
This type of mortgage can be attractive because the initial mortgage payments generally start out much lower than those in a FRM. This early benefit comes with the risk of increased and fluctuating later mortgage payments, as the interest rate changes over the course of the loan.
As you search for a home, getting pre-approved for a mortgage will be an important step. Let's get you started!