If you are new to buying homes for sale in South Lake Tahoe, one of the biggest hurdles is simply preparing for the mortgage loan application process. When you choose a South Lake Tahoe realtor, they can give you a heads up as well as offer their preferred lenders. If you choose a realtor in South Lake Tahoe who has been in the industry long enough, you can trust that whoever they recommend is probably going to be a good fit. However, in all situations, doing your homework is necessary. Just like you want the best bang for your buck when it comes to buying South Lake Tahoe homes for sale, you want to make sure you are getting the best loan for you, along with the best rate. If you are just starting the journey of buying homes for sale in South Lake Tahoe, check out this quick list on how the mortgage process works.
Saving for a Down Payment
This aspect requires work on your part before you even apply for the loan. When buying South Lake Tahoe homes for sale, you will need a down payment. While the 20% down payment is considered standard, it isn’t the end all be all. In fact, there are several loans that require as little as 3% down. Of course, read the fine print and understand all the stipulations that go along with that. Your South Lake Tahoe realtor can also offer some options. While we are not lenders, we have been around long enough to understand that there are different loan programs, making it easy for several types of buyers to qualify. The best way to get the process of buying South Lake Tahoe real estate started is by saving as much as possible for your down payment.
Credit & Income Verification
In order to qualify for a loan, you will need to verify income, credit history and assets. Get all your paperwork in order so that when you go to apply for a loan, you have the necessary information that verifies your financials. A stable income and good credit is incredibly helpful for locking in a great loan. If you have debt to pay, handle it as much as possible before you start looking at South Lake Tahoe homes for sale. Every realtor in South Lake Tahoe and mortgage lender will tell you that the better your credit is, the more options you have for a loan AND a better interest rate. Even if you think your credit is perfect, pull your report ahead of time to make sure there are not any errors sitting on your report, like a debt that was paid years ago.
Financial Plan
If you have fabulous credit and a great income, you may get approved for more than you really want to spend on South Lake Tahoe homes for sale. Sure, buying a gorgeous custom South Lake Tahoe real estate seems like a dream, but if you can’t really afford everything that goes along with it, like higher utility bills AND more furniture, then don’t. Sit down, crunch the numbers and come up with a realistic number that you can afford for housing. Just because you can afford it, doesn’t mean you should.
Appraisal
The lender will also need to verify the property value. They will not loan more than the property is worth. This is also helpful to understand that sometimes you may need to close the gap on your own in the scenario that your loan is less than the appraisal value. Your South Lake Tahoe realtor will be able to advise on this as well.
For more information on buying real estate in South Lake Tahoe, feel free to give me a call!
