Mortgage Advice Home Buyers Should Ignore
Bad advice is everywhere, especially in the home loan industry. Recently, Realtor.com took a stab at dispelling some of the bad advice home buyers believe. Two pieces of bad advice in particular stood out that we thought deserved more discussion:
“Don’t bother getting pre-approved for a mortgage”
Shopping for a home is exciting, so it’s easy to gloss over the home mortgage loan part of the process. Even if you just started shopping, it’s essential to have a pre-approval under your belt.
Sure, a pre-approval does involve pulling together some paperwork, but it’s much more straightforward than you might think. You’ll generally need:
- Past Two Years’ W2s
- Past Two Years’ Federal Tax Return (self-employed)
- Last Month of Paystubs
- Two Months’ Bank Statements reflecting down payment
- Retirement accounts to reflect emergency reserves
In addition, Great Midwest Bank offers an easy, online pre-approval application that usually takes about 30 minutes.
Having a pre-approval, especially from a local, well-known institution, shows you’re a serious buyer. Realtors will notice and that and it could give you an edge when going after a property with multiple offers.
“Get your mortgage from the bank where you already have an account”
Getting your mortgage where you do your banking is faster and easier. Plus, you’ll get a better rate because you’re already a customer… right? No.
Realtor.com says, “You already know to shop around for a home. You need to do the same with your loan.”
We couldn’t agree more. Many of our borrowers have their checking and savings accounts with national banks. But those same banks realize they have a captive audience and often are more expensive. Plus, they’re not always best equipped to handle mortgage lending on a local level. Great Midwest Bank specializes in both low-cost, fixed rate mortgages and portfolio loans that are custom-fit. We are experts in the Wisconsin housing market and can help guide you through the mortgage process in ways a national bank might not.