Searching for home loan brokers can be overwhelming. The average consumer has no idea what questions to ask regarding the purchase or financing of their dream home. Home loan brokers are equipped to inform and guide the consumer through the arduous process of home financing. We have obtained the following steps as a resource for prospective home buyers.
The mortgage financing industry has faced challenges in recent years, to say the least. Those mortgage brokers who have managed to not only “stay alive” but also thrive through challenges are individuals driven by customer service. Also, they provide road maps for their clients. In an interview with a successful loan officer, we have been able to find some steps (that they provide to their clients) that make them successful.
1. Find the amount you can borrow. Your monthly first mortgage payment will be only part of your monthly housing expenses. You will also have to pay property taxes, homeowners insurance, and repair and maintenance costs. Budget and meet whatever mortgage payment you can afford. The New Home Calculator and Mortgage Payment Calculators can help you estimate the payment and arrive at a maximum loan amount for your mortgage.
2. Keep track of mortgage rates. A lower rate can save you big on any home loan. Talk to your loan officer about current rates. If you are concerned about rates going up before your loan closes, ask the loan officer about an interest rate lock, who can ensure that you will be able to get the rate they quoted you.
3. Choose a mortgage broker. A well-qualified home loan broker can teach you more about how to get your first mortgage and what types of mortgage products should meet your needs. The mortgage broker that offers the lowest interest rate may not offer the best service or the best service, two benefits you probably want when getting a first mortgage.
4. Save for a down payment. You will need to make a down payment to get a first mortgage. If your down payment is less than 20 percent of the home’s purchase price, you will also have to pay mortgage insurance, which protects the lender in the event that you default on your loan. Some loan programs, like the FHA, allow you to use a gift from a family member or other source as part of your down payment.
5. Have all your documents in order. When you are ready to apply for a first mortgage, you will need to give the loan officer copies of your recent pay stubs, tax returns, and bank statements. Having these documents ready in advance will make the process easier.
Home loan brokers provide a map for the person to follow. Additionally, mortgage loan brokers act as tour guides. The right tour guide will be willing to take the time to make sure people fully understand their options.
The tips above were provided by Tanya James from Caltexfunding. For more information on Mortgage Loan Brokers, Home Protection, New Home Calculators, or Mortgage Payment Calculators, check out the caltexfundingresource site and search for Tanya James’ resource.