Maybe your family is expanding, and you’ve outgrown the space in your current home. Or your spouse has received a nice promotion that involves a transfer to a new state. Whatever the reason you may have for shopping for a new home, the smartest thing you can do before looking at prospective houses is to get pre-qualified for a mortgage loan.
Home State Bank’s Jim Sorenson (NMLS #488093), Vice President of Sales for Residential Mortgages, says that the main benefit to getting pre-qualified for a mortgage loan is that there will be no surprises during the home-buying process. The pre-qualification procedure involves a credit check, which could reveal a problem the buyer wasn’t aware of, such as identity theft or a simple mistake regarding a credit card account. Difficulties like these can delay the process of obtaining a loan, so anything caught early can be resolved in a timely manner.
Another benefit of pre-qualification is that the buyer knows exactly how much he or she can afford to spend on a home. It saves time during the house-hunting process when buyers know their highest price point, including annual taxes assessed for each property. For the purchase of a townhome or condo, association fees must also be taken into account.
The pre-qualification process involves more than just a credit check; the buyers’ financials would be assessed, including a current pay stub, a couple years of past tax returns, and financial statements that show where the down payment for a home would be coming from.
Home State Bank, a community bank in McHenry County, offers many advantages to prospective home buyers; a terrific reputation in the community, experienced lenders who know local realtors and the sales process, and a quick turn-around time so borrowers can get started searching for their perfect new home!
Home State Bank | 40 Grant St, Crystal Lake, IL 60014 | (815) 459-2000