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The right or wrong decision when signing your home mortgage can mean
thousands of dollars difference in interest paid. There are very important
considerations to evaluate before you commit to a finance option. For many
of us, our mortgage payment is the most important financial decision we
ever make. Doesn't it make sense to know as much as possible about the
financing of our home? Take the time to thoroughly investigate all of your
options!
Unbelievably many of us sign the first mortgage placed in front of us.
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 HBRC Agent has established a
relationship with one of the top lenders in your area.
1. 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. Their relationship
establishes them as a team member. The lender and agent work effectively
together. 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!
2. 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
lender 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.
3. Look at Your Options- Make sure you
see at least 3 loan programs for your mortgage. Lenders have at least 5-7
programs and should work with you and your agent on deciding what is best
for your circumstances. Evaluate all your options. After all, it's your
money you're spending - not theirs!
4. Demand Service- There is little
difference between a bank, savings and loan, or a mortgage broker 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, but
don't overlook the fact that you are the one spending the money and they
are the ones who should cater to your needs. Don't 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 concerning every step. This will
ensure that no details are overlooked and there will be no surprises.
6. Negotiate a Flexible Loan- Don't
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 going up. Make sure that you understand whether or not that is an
option in the package you are looking at.
7. Don't Give Up on the First No-
Initial decisions are not always final decisions. Going to a higher
authority can sometimes get you the loan, but do so with the assistance
and compliance of your lender and agent. Many times, special
circumstances, when explained properly to the person in charge, will win
you the loan.
8. Don't Wait for the Bottom of the Market-
The odds of your hitting the bottom of your market are about like 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.
9. 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.
10. 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.
11. Get Pre-Approved- Lenders will
provide you with a certificate of pre-approval. By getting pre-approved,
you know exactly what financial parameters to stay within. Your agent and
lender will consult with you and help you get qualified for the loan that
best fits your needs. Many times, they are able to get you a larger loan
than you may have thought possible.
Getting approved for a loan is often times much easier than you might
think. I sincerely hope this brief report has been a help to you. If you
would like a free, no-obligation consultation, please click below.
Be completely honest with your lender. Remember they get paid only if you
get approved, and complete honesty helps them present the loan in the best
light. HBRC will work with GSF Mortgage Corp. Or any Lender you choose to
give you the best service possible!
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