Nothing will scare a homebuyer more than a Google search for “How do I get approved for a mortgage?” The search results will likely lead down a rabbit hole of misinformation, convincing the buyer that he or she needs exactly 20% down, perfect credit, and two years on the job. And if the buyer clicks on an ad while searching and puts in a phone number, that person will likely be getting numerous calls from lead-buying online lenders within minutes.
The fact is, most buyers can finance a house with 5% down and any length of time on a salaried job or one year on a commission job. A local lender who knows the latest loan programs and takes the time to understand the borrower’s needs can save time, money, and frustration.
A local lender, McGowin-King Mortgage offers purchase, refinance, renovation, and construction loans, plus reverse mortgages.
Here are some of the best tips for this competitive market.
GET APPROVED EARLY. Most preapprovals are good for 120 days, so getting approved early allows your realtor and you to move nimbly.
CONSIDER A NONCONTINGENT OFFER. This isn’t a risk-free approach, but if you qualify with the new mortgage and your current one, you could make an offer not contingent on the sale of your house, which is more attractive. And after you sell your house, you may be able to recast the loan buy to pay it down without a refinance.
CLOSE BEFORE YOU START YOUR NEW JOB. The pandemic era has increased job transitions for many Americans. But most home sellers want to close quickly, and if you’re starting a new job in, say 60 days, asking for that much time can hurt your offer. But some lenders allow you to close before you start, as long as you have a signed employment offer. This way you can offer to close quickly even if the new job hasn’t begun.
USE A LOCAL LENDER. In markets like Birmingham, the realtor community is tight, and most agents prefer working with a local, known lender rather than a big-box or online lender. An approval letter from a local lender carries more weight and makes that offer more attractive, in part because brokers and local lenders generally have a better track record with on-time closings.
Warner McGowin
Founded in 1998 by Jim King and Travis McGowin, McGowin-King Mortgage is one of Birmingham’s most trusted mortgage lenders.
With a group of 14 originators, processors, and staff, we pursue a simple philosophy: We believe that when you exceed a customer’s expectations, you build a relationship. That’s much more than just a transaction. It means we’re here before, during, and after your loan or HECM process. It means we’re your advocate during one of the biggest financial decisions of your life. It means we want to do business with you again, and we’re willing to work hard to earn it.
While those are simple ideas, they’re not common practices. But those are our guiding principles. Everything we do, we do with these goals in mind.
mcgowinking.com / 205.879.7775 NMLS #431618
