There are few things more intimidating to the average consumer than
"applying" for a new mortgage. That's fairly natural. Whenever we apply for
something, we invite the possibility of rejection. "What if they say no. That would
be so embarrassing."
Consequently, many real estate buyers approach their bank from a position of weakness.
They hope that their application will be approved so that they can go ahead and purchase a
home. Many mortgage applicants forget that they are customers and that banks are in
business to lend money. As a real estate buyer, you are every bit as important to your
bank, as your bank is to you.
Of course, that doesn't mean that there's no chance of being turned down. Absolutely not!
What it does mean is this; your lender is going to qualify you for a loan based on your
past credit history, your present income and expenses, and your ability to repay the loan.
Asking for better terms is not going to jeopardize your application in the least. Shopping
around for the best terms available for your personal circumstances is smart business.
Don't let your fear of rejection stop you from doing what's best for you.
Apply for your mortgage before you begin to look at homes. See your banker early in the
process and make it clear that you are just beginning to "shop" for mortgage
services. You understand that the mortgage business is very competitive. You will be
talking to a few different banks before making a decision. You'd like to know what they'd
be prepared to offer you in the event that you select their institution to finance your
home. Then, shop around a bit. Compare the offers and select the one that makes the most
sense for you.
If you are unable to secure financing with your top choice in lenders, ask your real
estate agent to help you secure a mortgage elsewhere. If you are turned down a second
time, there's a strong chance that you just aren't ready for such a financial commitment.
Discuss with the lender what steps you could take to improve your application for the
future. They'll know exactly what you can do to get a yes next time.