5.
Read This Report Before You Sign Anything!
The right or wrong decision when signing your home mortgage can mean thousands of dollar's difference in interest paid. There are very important considerations to evaluate before you commit to a mortgage and promissory note. For many of us, our mortgage payment is the most important financial decision we will ever make. It makes sense to know as much as possible about the financing of your home. Take the time to investigate all of your options!
Typically, the excitement of the new home purchase reduces the mortgage to not much more than an afterthought. What you read here could save you hundreds or even thousands of dollars. Your Exclusive Buyer Broker professional has established relationships with the top lenders in your area. By aligning yourself with a true Exclusive Buyer Broker, you insure that all the financial steps are taken care of properly and economically.
1. Consider Lenders Recommended By Your Agent - Lenders are often more flexible with buyers of agents that have done business with them previously. The lenders and your Exclusive Buyer Broker work effectively together, and may make a difference in helping you find the right lender to qualify for financing if you are “tight on the ratios”. Your Exclusive Buyer Broker will assist finding the most economical financing possible. The right financing can save you thousands of dollars over the life of your loan!
2. Do Not Attempt Paperwork Alone - All the paperwork required to obtain financing for a home could be quite intimidating and frustrating for a homebuyer. Make sure you have your lender help you with all the paperwork. Get help from your Exclusive Buyer Broker. Their expertise will help alleviate the stress and it will prove to be invaluable before you sign your mortgage.
3. Look at All Financing Options - Make sure you see at least 4 loan programs for your home purchase. Lenders have at least 10 programs and should work with you and your exclusive buyer broker on deciding what is best for your circumstances. Evaluate all your options. After all it is your money - not theirs!
4. Demand Service - Most of the time there is little difference between a bank, savings and loan, or mortgage brokers when it comes to the competitiveness of their loan rates. The difference is in the service they provide. It is their job to serve you! You want to get the loan approved and move into your new home as quickly as possible. Do not overlook the fact that you are the one spending the money and they are the ones who should cater to your needs. Do not let the process become so intimidating that you lose that understanding.
5. Stay in Complete Touch - You should receive a written report from your lender about every step. This will insure that no details are overlooked and there will be no surprises. Your purchase contract may call for an “opinion letter” to be sent to the sellers. Make sure your lender and Exclusive Buyer Broker follows through for you.
6. Negotiate a Flexible Loan - Do not just accept the terms they lay down in front of you. Lenders are in the business of loaning money and they want your business. Make sure you examine every option available to you. If you negotiate a variable rate loan, many lenders have the ability to move you into a fixed loan if rates start rising. Make sure that you understand whether this is an option in the loan terms you are considering.
7. Do Not Give Up If The Underwriter Says No – Being turned down for a loan is not always a final decision. Going to a higher authority can sometimes get you the loan, but do so with the assistance and compliance of your lender and exclusive buyer broker. Many time’s special circumstances when explained properly to the person in charge, will win you the loan.
8. Do Not Wait For The “Bottom of the Market” - The odds of you hitting the bottom of the market are about like the odds of you hitting the state lotto! You will almost never hit the bottom of a market. Trying to time the decision 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 are 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 will not miss the property you have spent so much time locating.
9. Honesty Is The Best Policy With Your Lender - Your lender wants to help you with your loan. The only time they are paid is when you are approved and the loan “closes.” 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, because they will find out everything credit wise eventually. This in turn helps the loan get the highest approval rating.
10. Become Completely Educated - Pick your lender's brain. Lenders will teach you all about your various options, even if you have not 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 Exclusive Buyer Broker will then continue to recommend clients to the courteous and service minded lender on down the line.
11. Get Pre Approved. Lenders will provide you with a letter of pre-approval. The money goes for a mortgage credit report, which you would pay anyway once you applied for financing. By getting pre approved, and not just pre qualified, you know exactly what financial parameters to stay within. Your exclusive buyer broker and lender will consult with you and help you get approved for the loan that best fits your needs. Getting pre approved for a loan is easier than you might have thought and you may be able to get a larger loan than you expected. Remember that being pre approved is the same as being a “cash” buyer, which could save you money in negotiating a lower price or giving you a competitive advantage over competing buyers.
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