When to Apply for a Mortgage

As a real estate law firm, Michna Law Group often receives questions for clients pertaining to the home buying and selling process. Today, we'd like to examine another one of those questions: "How early should I apply for a mortgage when looking for a house?"

The first thing to keep in mind is that any information can be useful information. It doesn't hurt to meet with lenders, banks, mortgage brokers, and other real estate industry workers prior to signing a real estate contract.

By educating yourself about the costs of financing a home, you'll wind up better prepared for the eventual costs. Additionally, this information can help you decide how expensive of a home you can purchase.

In general, prequalifying for a mortgage offers a couple key benefits:

1) Sellers are more comfortable with a pre-approved buyer. In general, the last thing anyone wants is another hiccup in the homebuying process. In fact, prequalification can help you wain out over a competing buyer.

2) Standard residential real estate contracts allow the buyer five days to apply for a loan with a 30-day final approval deadline. Through prequalification, this issue is completely negated.

So when is the best time to apply for a mortgage? Assuming you know you want to own a home, the earlier the better.

For further information on real estate law, please contact Michna Law Group by phone at 847.446.4600 or by email at BJM@MichnaLaw.com.