There are plenty of different loans available to you when you are financing a home. However, your best bet is always to take a mortgage out on your house. A mortgage can simply be defined as a loan, which is taken out by using your property or home as the collateral.
If you are planning to finance small prefab homes, it is recommended that you take a mortgage rather than looking for other options. This is because most of the financial institutions are a lot more comfortable to offer mortgages to prefab tiny house owners than offering loans. Below are a few simple tips that will help you to acquire prefab home mortgages.
Gather Your Documents
The first and most important thing to do after deciding to acquire a mortgage is to gather all your important documents. You might not have copy of some of the important documents required to apply for the mortgage. So, make sure that you have all the proper documents. The next step is to consult with your homebuilder to check if you have all the necessary documents to get the mortgage.
The next step is to get prequalified for your prefab home mortgage. Financial institutions and banks will gather all the information that you have submitted and will offer you a rough estimate on what sort of rate they are willing to provide you. If you are not content with their proposal, book an appointment with a few more financial institutions and compare the offers because it will help you to get a better rate.
Let us assume that you have already found a lender who is willing to offer a good rate, now you will have to be preapproved for the mortgage. Many prefabricated homeowners have a misconception that preapproval and prequalification is exactly the same thing. But in reality, your lender preapproval requires a hard check on your credit score.
If you have already secured a prefab home mortgage preapproval letter, then prefab home manufacturers and builders will understand that you are serious about the budget and they will explain the necessary details of the construction process. It is wiser to give them a proper budget, as it will help them customize the prefab home without exceeding your budget limit.