Searching for home loan brokers can be daunting. The average consumer has no idea what questions to ask regarding the purchase or financing of their dream home. Mortgage 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 potential homebuyers.
The mortgage financing industry has been challenged over the last few years, to say the least. Those mortgage brokers who have managed to not only “stay alive” but thrive through challenges are people motivated by customer service. Also, they provide roadmaps for their clients. In an interview with a successful loan officer, we were able to find some steps (that they provide to their clients) that make them successful.
1. Find the amount you can afford to borrow. Your monthly first mortgage payment will be only part of your monthly housing expense. You’ll also need to pay property taxes, homeowner’s insurance, and repair and maintenance costs. Budget and stick to a mortgage payment you can afford. Mortgage and new home payment calculators can help you estimate your payment and determine a maximum loan amount for your mortgage.
2. Keep track of mortgage rates. A lower rate can mean big savings on any home loan. Talk to your loan officer about current rates. If you’re concerned that rates may go up before your loan closes, ask your loan officer about a rate lock, which can ensure you’ll be able to get the rate you were quoted.
3. Choose a mortgage broker. A well-qualified mortgage broker can provide you with more information on how to get your first mortgage and what types of mortgage products should meet your needs. The home loan broker that offers the lowest interest rate may not offer the best or best service, two benefits you’ll probably want when getting a first mortgage.
4. Save for a down payment. You will need to make a down payment to obtain a first mortgage. If your down payment is less than 20 percent of the home’s purchase price, you’ll also need to pay for mortgage insurance, which protects the lender in the event 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’re ready to apply for a first mortgage, you’ll need to give the loan officer copies of your recent pay stubs, tax returns, and bank statements. Having these documents prepared ahead of time will make the process easier.
Mortgage loan brokers provide a map for the individual to follow. Additionally, home loan brokers act as tour guides. The right tour guide will be willing to spend time making sure people fully understand their options.
The tips above were provided by Tanya James of Caltexfunding. For more information on home loan brokers, mortgage protection, new home calculators, or mortgage payment calculators, check out the caltexfunding resource site and search for the Tanya James resource.
