One reason the mortgage process seems mysterious and intimidating to many potential homebuyers is that many of the steps happen behind the scenes. When borrowers understand the flow of the mortgage process, however, it can reassure them and help them prepare what they need even before they begin! And that’s good news for everyone involved!
The Surprising First Step That Comes Before Looking at Homes
What many excited homebuyers don’t realize is their first step should not be finding the home and making an offer. The first step should begin long before that, with a loan prequalification from their lender.
A prequal should be done first, before a home is found, because it sets a clear course for everything else.
Buyers know how much home they can truly afford, so they can focus in on those properties immediately without being distracted by homes that aren’t the best fit for them financially. They can pay down any debt or clear up issues with their finances ahead of time, before they put in an offer. Then, when they find their dream home, they can go to the seller with the added confidence that their financing is certain, an important fact that won’t escape the seller and their agent, either.
Take a look at this simple infographic, which lays out the roadmap for the mortgage process in a clear, easy-to-follow way. And share it with your clients! An informed buyer is going to be an easier buyer for you to work with – and a happier, more comfortable one, too!