For most people in Mississippi and throughout the country, a home will be the most expensive item that they buy in their lifetimes. Therefore, it is important to go through the process of buying a home carefully. Doing so may allow a person to save money on interest or negotiate the best possible price for the home that he or she is interested in. To maximize the odds of a purchase offer being accepted, a buyer should obtain loan approval before submitting it.
This shows the seller that an individual is serious about purchasing the property and has the means to close on the deal. Another benefit of obtaining a tentative loan offer is that it helps to set a buyer’s budget. Generally speaking, a lender will let an individual know how much he or she can reasonably expect to borrow.
Ultimately, buyers won’t waste their time looking at homes that they can’t obtain financing for. People are encouraged to check their credit score and reduce their debt-to-income ratio prior to obtaining preliminary approval for loans. Doing so may increase the amount that they are approved for or help them to obtain lower interest rates on any loans that they eventually obtain. Prospective buyers are also encouraged to shop around for the best rates and compare lenders before seeking financing.
Those who are in the market for a home may want to consult with a real estate law attorney prior to closing on a transaction. An attorney may be able to help a buyer review mortgage and purchase contracts before they go into effect. Legal counsel may also help buyers take steps to ensure that sellers adhere to their obligations under a purchase contract.