|
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 15 or 30 year
note. For many of us, our mortgage payment is the most important
financial decision we’ll 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 real estate professional
has established relationships with the top lenders in your area.
By aligning yourself with a professional agent you ensure all the
financial steps are taken care of properly and economically.
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
All 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. Your agent will then continue to refer people
to the courteous and service-minded lender on down the line.
11. Get Pre-qualified-
Lenders will provide you with a certificate of pre-qualification.
By getting pre-qualified, 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.
My hope with
this report has been to educate you and help you avoid the pitfalls
many home buyers go through. I hope you found the ideas valuable
and if there is ever any way I can be of service to you or anyone
you care about, please contact my office. Your initial consultation
is always completely free of charge and you’re under no obligation
of any kind. We’ll sit down for 15-20 minutes... no high-pressure,
just plain, honest talk about what it’s going to take to achieve
your personal goals. Go ahead, pick up the phone and give me a call.
I’d love to hear from you!
|
