Secrets to Shopping for a Mortgage
Secrets You Need To Know When Shopping for a Mortgage
The right knowledge is essential! Here are some new things to think about:
1. Pre-approved mortgages
Did you know that you could be approved for a mortgage, and not just be prequalified for a loan?
Most banks and mortgage companies do not offer you this option. They have you pay the entire application fee up front.
With the pre-approval, your credit and income are checked out ahead of time and your financial information is sent to the underwriter who will be approving your mortgage.
You will then know -
How much you can spend for a home
How much money you will need to close
If you need to consolidate your debts
If your credit is good enough
The best mortgage for you and your family
Should you buy or build a home
How much money you are actually saving by owning instead of renting
What I am talking about here is a real, honest to goodness mortgage approval. Not one of those “approval cards” that when you read the fine print, you find out that you are not really approved. Without pre-approval, you can buy your home, and not worry about financing.
2. Beware of banks and mortgage companies that do not offer you their “best deal” first.
The conversation would go something like this…You: What are you rates and points? Bank: They are “such and such.”
You: Great, thanks. I am checking around with some other banks and mortgage companies.
Bank: Well, after you check around, give me a call back because maybe we can meet or beat the deal they give you.
This kind of makes you wonder that if you didn’t mention you were shopping around, that you may have ended up paying a higher rate, or more closing costs.
Wouldn’t it make you suspicious as to why that bank did not give you their best deal first?
3. Consider using a Buyer’s Agent
Most real estate agents represent the seller, they do not represent you as a home buyer.
There is a fairly new type of real estate agent called a “Buyer’s Agent.” They work for you, not the seller.
You do not pay their commission.
The buyer broker can disclose things to you about the seller (or the home) that they would not be able to if they represented the seller.
If a real estate agent will not offer you a buyer brokerage agreement, ask “Why Not”… or better yet, find another agent!
4. Utilize a Lender With Established Ties to an Agent
Lenders are much more flexible with the real estate agents who have done business with them previously. This relationship then establishes them as a team. The lender and agent work effectively together, referring each other business. That’s why a good agent can make substantial difference in setting up the most economical financing. And the right financing can, literally, save you tens of thousands of dollars over the life of your loan!
5. Don’t Attempt Paperwork Alone
All the paperwork required to complete the purchase of a home can be quite intimidating and frustrating for a home buyer. Make sure you have your lenders help you with all the paperwork. Get help from your team, your lender and agent. Their expertise will help alleviate the stress and it will prove to be invaluable before you sign your mortgage.
6. Don’t Wait for the Bottom of the Market
The odds of you hitting the bottom of your market are about the odds of you hitting your state lotto! You will almost never hit the bottom of a market. And trying to time it exactly right is often costly. It usually causes a person or family to miss out on the opportunity to purchase a very nice property. You’re better off simply negotiating the best rate and terms you can at the time you find a property. If interest rates go down, you can refinance. This is a much better approach because you won’t miss out on the property you’ve spent so much time locating.
7. Be Honest With your Lender
Your lender wants to help you with your loan. The only time they get paid is when you get approved. The more information (good or bad) you provide your lender, the easier it will be for them to get an approval. It helps them present the loan in the best light. This in turn helps the loan get the highest approval rating.
8. Become Completely Educated
Pick your lender’s brain. Lenders will teach you all about your various options, even if you haven’t found the right property yet. They will be very patient with you while you are looking, especially if you have aligned yourself with the right agent. They understand all the up-front work will pay off in future business. Your agent will then continue to refer people to the courteous and service-minded lender down the line.
I hope you have enjoyed this special report. We currently have over 40 creative loan programs to fit your needs. Please contact us at 530-244-6830 to set up your FREE No-Obligation consultation where we will meet to tailor a program to fit your needs and comfort levels for monthly payment and investment.
Sincerely,
Dan Conley
US Lending
2280 Bechelli Ln
Redding, CA
Phone: 530-244-6830
Click here for more information -> Redding Mortgage
