How to Shop For a Home Loan

Give Yourself Plenty of Time to Find a Home Loan

If you are like most people, you will rely on lender financing to purchase a home. In most cases, it will take several days or weeks for a lender to review your application and make a loan decision. You should also consider getting conditional approval from a lender prior to submitting a formal application.

How Long Do You Have to Close?how to shop for a home loan

In many cases, a seller wants to close on a home sale no more than 30 days after an offer is accepted. However, it is possible that a seller wants to close on the sale in less than 30 days. To ensure that you can meet a proposed closing timeline, it is a good idea to already be approved for financing or be in the final stages of obtaining a loan.

Are You Ready to Submit a Loan Application?

A mortgage lender is going to want to see that you have sufficient income and a reasonable debt-to-income ratio before approving your application. A lender is also going to want to see that you have a credit score of at least 640 and that you have steady employment. In some cases, it could take months or years to create a borrower profile that a lender is willing to take a risk on. (Are you financially ready to buy a home? Read this article.)

Interest Rates Can Change at Any Time

Mortgage rates are another variable that you need to consider when deciding when to start shopping for a loan. The best loan officer in Las Vegas can help you learn more about interest rates and whether a fixed or variable rate loan is in your best interest. A loan officer could also talk more about specific loan products and how they can make it possible to obtain a mortgage at an affordable monthly payment.