While your home inspection is going on you will also be required to obtain your mortgage commitment, if you are not already qualified. The contract will most likely contain a mortgage contingency which will provide you with a certain time frame from the signing of the contract to obtain your mortgage commitment, usually 30 days. This is another very important protection you as the buyer will have, but you also must be careful to comply with the terms. You will be required to adhere to the mortgage application process in order to rely on this clause if you fail to qualify for a mortgage. If you do not receive a mortgage commitment within that time, you may elect to cancel the contract and get your deposit back. Or the parties may agree to extend the time for you to obtain your mortgage.
It is a good idea to be pre-qualified for your mortgage so that there is one less thing for you to worry about while making such a big decision. If you have never applied for a mortgage before, you might be surprised at how much information you need to provide to qualify for the mortgage you want and how much you qualify for. This process will require you to take a close look at your finances and credit profile. In addition, you will find that if you make a larger down payment, you can obtain a lower interest rate. You will also be able to eliminate the bank’s requirement that you take out loan insurance.
Contact Franklin Montero for more information.