It doesn't matter if you are moving from California, Canada, Florida, from the east coast to the west coast, etc, etc. But not only will you need the services of a good realtor to help you with unfamiliar territory, you will need the services of a very good loan officer.
Just moving and/or relocating in general can be challenging. Keep in mind, even though you will be living in that house, may it be with a small family or a large family, you want to feel secure when it comes to your finances. As carefully as you select your realtor, you want to do the same with the person that will help you with your mortgage financing. Especially if the reason for moving is for short term, because you just don't want to spend money frivolously on the wrong mortgage program.
One important thing, don't wait last minute to find out your financing options. Even if you think your credit and situation is better than average. Why is this? Conventional financing has become a little more difficult and if anything, a little more costly in the last several months. Why is this? Because Fannie Mae and Freddie Mac have gone to risk base pricing. Please read this to understand better financing options that your loan officer might not tell you. Will Conventional loans be just like the Subprime mess? FHA mortgages could be your best option. Understand why this is.
It doesn't matter if you have 5% down or 10% down, you want a reliable loan officer that not only has access to all mortgage programs, but someone that understands your needs and goals. Someone who will properly give you the best advice and not what you always think that you would want. Anyone can give a rate quote, but not many can purposely give you great service, excellent knowledge, and be very good at communication.
So as you shop for your home, shopping for a mortgage is just as important and shouldn't be taken lightly. Those that boast :
- lowest rates
- lowest fees
- best rates
are usually not the best fit for you. It's called sales. Those that use key phrases in their blogs or web sites such as "I am very honest", "I'm trustworthy", and "I do what I say I'm going to do", are just sales pitches. Sure, we all want the best and cheapest. But think of this. Would you want a doctor who is giving you the best deal just to get your business? Should that person that is very good at what they do, get compensated for it? Isn't knowledge king? Someone that knows enough and will educate you on the process and not just mislead you with false promises?
Let me end with this little secret. We all get the money from the same place when it's all said and done. Each company has a certain profit margin. The larger companies such as Countrywide and Wells Fargo? Yes, they may service your loan, but pieces of your loan are sometimes sold to other investors for a profit. And when you go to these large companies, who is doing the loan for you? Not Mr. Countrywide or Mr. Wells Fargo. A loan officer with a name above their head. My point? You are dealing with an individual. Many of these people could be brand new and/or just a sales person. Just think before saying yes to someone. All in all, if you talk to 4 to 5 people and one is the lowest by a large margin, what does this usually tell you? If it's too good to be true, it usually is.
So, when you are relocating, even if it is across country and you might be pressed for time, don't rush into your financing options. Make sure you pick your loan officer wisely. Someone that will spend time asking you questions and just not quote you a rate and/or a few fees and then just move onto the next person.
The relocating blog mentioned above is written by Jeff Dowler. For his whole series, please read his relocation series.
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For more information on FHA loans, please go to this link. The FHA Expert You can also go to this group : The FHA Mortgage Group
For more information on how you can obtain your dream home, please click here : Mortgage Financing Options
Copyright © 2008 by Jeff Belonger
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