When obtaining a home loan, you’ll receive two important documents from your lender: a loan estimate and a closing disclosure. On the surface, these documents are very similar, but they both serve different purposes. Here’s what you need to know about the differences between these two forms and what each means for you:
What You Should Know Before Buying a Home
Buying and owning your own home is the American dream. In order to accomplish this, it requires a personal and financial life plan. Purchasing a home is a large investment and the decision to buy should not be taken lightly.
Simply having the money for a down payment is not a reason to purchase a house. You should be both financially and emotionally prepared when applying for a home loan in Kansas City. Before you purchase a home, you must figure out if it is right for you. Here are some questions to ask yourself:
- What are my present and future plans?
- Do I need to get pre-approved?
- What does it takes to buy a home?
What are Your Present and Future Plans?
Knowing what you want now and for your future is the first step toward understanding the financial and lifestyle commitment homeownership involves. If you don’t plan on staying in your home for a minimum of 5 to 7 years, buying does not make sense for your lifestyle. You would most likely be better off renting until you decide you are going to settle down.
However, if your employment situation is secure and you’re prepared to stay in one place for several years, you may be ready to buy a home. Just remember to be realistic. The process is never perfect, but if you are ready to buy your own home, it will be worth it in the end.
Getting Pre-Approved Makes the Process Easier
Before purchasing a home, getting pre-approved is a necessary and highly recommended step. Real estate agents do not want to waste your time and theirs by looking at homes that are out of your price range. Pre-approval helps them identify homes that fit your criteria as well as your budget (this is true for first-time homebuyers and seasoned homeowners alike).
What Does it Take to Buy a Home?
Needless to say, you must have the desire to buy a home in the first place. Why even begin to go down the path of homeownership if you aren’t really interested in purchasing a home? Since getting a home loan in Kansas City and buying your house can be a lengthy process, patience is very important. You cannot expect your deal to be done in just a few days. Each borrower’s situation is unique, and sometimes problems unexpectedly arise when there is a lot of paperwork involved in a transaction.
Lastly, you need to be willing to commit to all of the other responsibilities that come along with owning a home like:
If you have these traits and believe you are ready to be a homeowner, get started now. Interest rates are still low and there are many different home loans in Kansas City to choose from.