How to get pre approved for a mortgage in Miami | The home buying process
Ah the joys and excitement of finding your next Miami home, can easily open the door to our creative vision of your future life, right? After all, I mean for all the years you work, you save, and do your best to make good decisions are all dedicated towards waking up tomorrow in a place you want to be.
In this short read, we want to empower and educate you with the right tools, and knowledge to protect and insure what should be a happy, stress free experience where you can freely focus on which Miami property is going to help you capture and fulfill your vision of how life will be. Without the right information, and resources what should be a dream can quickly spiral into agony, confusion and overwhelming discomfort.
1. Why getting an Online Mortgage Pre-Approval matters in Miami.
I suspect for many of our readers, most of you already know that you will qualify for financing and may have a good idea what your monthly payment and down payment will be. However, even if you do have pre-emptive knowledge, there is something very important to point out that is often over looked. The cost of financing, it is of equal importance to negotiating a sales price, here is why.
I will keep it simple for now, as I know most readers prefer short and sweet. The difference between 3.75% & 3.25% on a 30 year, $300,000 loan is $32,040.00 more that you pay. I mean that is like a free outdoor kitchen. The problem is how do you find and secure the lowest rate/cost loan in the market, specifically in Miami. It is almost by design that banks, lenders and financial institutions make it impossible to find, thus increasing bank profits. Makes sense, right?
SOLUTION: Use a Miami based mortgage lender that offers an online multi lender mortgage pre approval, loan comparison, loan closing service to insure you capture the lowest rate and closing cost from the nations best lenders. Of course, all real estate agents want pre-approvals to initiate the home shopping working relationship, but more importantly you want to squeeze with ease the most you can in savings, right? We hope so.
2. How to easily identify the best Miami Mortgage loan for you.
When looking at your loan choices, given that the online multi lender mortgage pre-approval tool will return lowest cost, rate loans 1st the selection really comes down to the term of the loan that you want to consider. Typically, shorter terms offer lower rates. You will notice that the as you scroll down the result page of all the lenders preapproved loan options, you will see 30 years first, 20 years second, then 15 years.
Once your Miami Online Pre-Approved Mortgage Loan Options are returned within 3 minutes from the time you start, be sure to look at the details of transaction. here you will see an a simple easy to understand closing cost summary. You can also, contact the company and they will instantly activate your closing cost details for each lender you like.
IMPORTANT MONEY SAVING TIP: If you definitely know when you will sell the home you are buying, you can squeeze with ease additional payment savings by grabbing an even lower mortgage interest rate by using a 5/1 or 7/1 or 10/1 ARM mortgage loan. The 5 implies the first five years are fixed, then each year after the rate can adjust. However, if you will for sure sell the home on or about 5 years you can capture even more savings, as these adjustable rates offer lower interest rates than fixed rates on mortgage loans.
Documents required for mortgage pre-approvals:
- Identification: Drivers License
- Income: Last 2 years tax returns
- Income: 1 months most recent paystub or retirement income documents
- Purchase Contract (if you have it)
- 2 Months Bank Statements to verify down payment monies.
3. Shopping for a Home.
Alright, now that you have secured the comfort of knowing that you have maximized your savings by sweeping the market for the lowest rate/closing cost mortgage home loans, you can joyfully focus your efforts on finding the right home for you to purchase in Miami in surrounding areas. The biggest problem we see for homeowners at this point, is they do not have a list of what they must have, and then a list of wishes. There is nothing worst then buying a home, that you realize was a mistake, a very costly and painful mistake, right?
By having this score card list, that only takes a fun filled creative hour to decide what matters most, will give you a simple grading system to measure which house gives you everything you dream to have. After all, it is what we do today that determines the quality of tomorrow. Lets accomplish this rightful within reach dream to take you where you for sure want to be tomorrow.
IMPORTANT HOME SHOPPING TIP: Make a list of what you must have for your next home, and a wish list of all the other items you would like. Each house you visit, score the house on this note pad to determine which house delivers the most for the price.
4. Purchase Home Negotiations and Offers.
At this point you should have a well established relationship with a solid real estate agent in Miami or surrounding area who has years of experience and understands the supply demand affects on market prices for homes in the areas you have selected. The real estate agent can look at Miami's housing inventory, and the average number of days homes are on the market and compare it to the the prior months and determine who is in control. the big question is, "Is it a Sellers Market or a Buyers Market?"
IMPORTANT PURCHASE PRICE NEGOTIATION TIP: If it is determined that you are in a Buyers Market, this means offering lower then asking price is advisable. If you determine you are in a buyers market, you will need to verify home is of fair market value. This means you want to make sure the home will appraise for the price they ask. Now normally, within the real estate contract offer that is sent there is a provision that if the home does not appraise, buyer can walk away.
5. Real Estate Offer Accepted.
Once, your offer is accepted you will have an agreed upon time to secure verified conditional mortgage loan approval. This means that a full mortgage application, your income documents and credit report have been submitted to underwriting and the underwriters have confirmed the loan is approved. The conditional approval, simply means that they may have some minor additional documents that are needed for final approval and closing (example: appraisal, home inspection report, letters of explanations, other properties owned information).
6. Home Inspection and Closing Day.
Most real estate transaction require home inspections in Miami or surrounding areas to help insure and or identify any necessary repairs or items that require corrections. This is a super valuable, and useful measure of protecting your soon to be new home. In the event there are items, in most cases the seller will be responsible to correct the issue at their expense. If anything major is uncovered, you should reserve the right to walk away. Assuming minimal or no issues, it is time to go to closing. At this point, at least 3 days before closing, the lender will have provided you with a Closing Disclosure. This is a final numerical summary of all the cost and is readily easy to read and understand. At closing, given you received and reviewed the closing disclosure it should just be as simple as 30 minutes of finalizing the standard loan closing documents and ownership paper work.
CLOSING SUMMARY
In closing, knowing the journey you are on, we hope this arms you with a clear understanding of obtaining a mortgage pre approval with best loans and rates, and the home buying process. Please like and share if this article has helped you. If you have any comments please let us know.
Best Regards,
