A serious buyer will recognize they can’t effectively begin looking at properties without knowing what they truly can afford, how much money they will need out of pocket, and what loan program is best for them. It’s important to know not all banks offer the same loan products, different loan programs allow for different regulated seller concession limits, and some banks have their own limit that they won’t exceed. We are happy to discuss what program might be ideal for your scenario. Most important is when you find your perfect home, we want you to be in the best possible position to negotiate your offer, and that would be having a letter from our lender assuring the seller you are a good buyer! Let’s talk!
Finding the right home for you is your primary goal, but enjoying it with a lower payment and better mortgage terms is a very important secondary goal. We stay abreast of the loan programs available, and work with many local mortgage brokers and lenders. We will review with you and share information so you can make the best decision for your financial picture. Knowing the lending products available is something we take pride in, so our buyers have the best tools at their fingertips.
The normal mortgage for working families – Just because there’s nothing special about your income stream, and you’re getting a paycheck every week, that doesn’t mean that there won’t be differences in mortgages and lenders for your needs. Every mortgage broker and most lenders tend to work within their own requirements and procedures, and these may or may not be the friendliest terms for a salaried or hourly wage earner. We are happy to share contact information with you for mortgage brokers and lenders so you can make an informed decision.
The self–employed borrower – Since the mortgage and housing crisis that began in 2007, it’s become a grueling process for a business owner or self–employed person to get a mortgage. Documentation of income and expenses is much more detailed, and we’re up–to–date on all of it. There are mortgages specifically crafted for the self-employed.
Less than stellar credit – All types of lenders have become tougher in our new financial environment, and it’s easy to get a ding or two on your credit these days. It doesn’t even take a mistake or late payment, as credit scores are reduced for the amount and ratio of debt, as well as types of debt. Millions of people pay their bills on time and still don’t have those high end credit scores. Many people are in this category, so if you are here, you are not alone. It’s very important to know what lenders offer mortgages for less than high end credit scores, you cannot afford to go to several lenders and have each of them pull your credit scores, this will further reduce your score. Let us share what we know with you. The thing to remember is that Debbie Fisher Hometown Realty LLC. is right there with our real estate buyers throughout the negotiation process with the latest information and experienced advice.
ARMs and When They’re Appropriate – Though most residential home buyers are buying a home they intend to occupy for a number of years, on average around the country at least eight, this isn’t always the case. Also, investors may be looking at a shorter ownership time frame. ARMs, Adjustable Rate Mortgages, are appropriate if the plan is to own a home seven or fewer years, particularly five or fewer. Because the lender is tying up their money for a shorter defined time period, they loan at lower interest rates. ARMs can result in hundreds of dollars a month in lower payments in some cases. They can also allow a buyer to qualify for a larger home. However, this isn’t generally a great practice, as once the ARMs fixed rate interest period is over, rates can escalate more than expected.
Financial Disclosure and Deal-To-Closing Considerations – Especially after the mortgage and housing problems that began in 2007, lenders and their underwriters are scrutinizing financial, income and expense information much more closely than ever before. Be prepared to dig out a lot of documentation, and it’s best to be forthcoming with any financial information that impacts your ability to pay the mortgage payment. Even if it’s not asked for early in the process, be prepared for questions and requests for documents throughout the process. Also, it’s highly recommended that you not add any credit card or other debt between the purchase contract and the closing. Just before closing, most lenders will do another credit check and a check for any liens or encumbrances.
Watch the Fees and Question Them – There are a number of fees associated with getting a mortgage, and the total of origination and other fees is usually the highest closing cost aggregate item in the deal. Never hesitate to ask about all fees, why they’re charged and why they’re a certain amount and how they’re calculated. It’s your money, and you’re the customer.