Speedy Mortgage Assurance

Published by julia | Filed under Buyer / Seller Tips, Market Trends, Real Estate

The world of real estate is constantly changing. Today we hear the term Buyer’s market but it was not that long ago that the world was the Seller’s oyster. You can’t get comfortable because the rules keep changing. Such is the also the case for the mortgage market. As the Government imposes stricter rules on our lending institutions to make up for the boom of the overly creative financing methods we have seen, it is important for you, the Buyer, to be proactive in the processing of your loan. New restrictions are popping up every day, just like the changing interest rate, and if you drag your feet during this process it is very possible that your window for financing that house you have fallen in love with, will be lost. Here are a few things you can do to speed up your loan process.

Educate yourself. Not long ago, when choosing a loan, the only thing to compare was interest rates on a fixed loan. There are so many more programs today, each offering something a little different, which presents so many more decisions that need to be made. Do your homework and find out which one is the best match for you.

Compare. Once you have a pretty good idea which program works for you, get a few quotes from different lenders. This could be the biggest financial decision you will make in your lifetime and you shouldn’t take it lightly.

Keep your credit tight. Even before you are ready to start shopping houses and mortgages, get a copy of your credit report to see if there are any blemishes that might affect your buying power. Pay everything on time and borrow wisely and that will save you money and frustration when it comes time to buy.

Shop within your means. There are all sorts of variables that affect a person’s decision of how much to spend and what will make a comfortable payment. It is tempting to stretch just a bit for that dream house, but make sure you can handle it. Don’t forget to estimate taxes, insurance, and other recurring costs associated with the house, otherwise you could get yourself into trouble down the road. It is very important not to settle when shopping for a home, but if your mindset is right you will be able to find the perfect house to suit you without going so far out of your budget. More…Remember, your budget is the amount you can comfortably pay each month, not the maximum loan amount for which you qualified.

Communication. Don’t request loan info or application while you are at work if you will be too busy to talk when they call back. Don’t inquire from your work email address if you cannot access it at home. Applying for a loan should not be done on a whim. You should plan for it make sure that you will be available when the lenders start calling.

Turn in your paperwork. The biggest waste of valuable time to the loan process is the buyer’s feet dragging to get the requested documents turned in. Yes, it’s a pain, you didn’t save your pay stubs and your w2s are filed (buried) somewhere you keep telling yourself you will find it all tomorrow. That is especially dangerous in this harsh market because the loan might not exist anymore if you take too long.

Sign docs together. Loan application documents are among the most difficult papers you will come across in your life. Don’t struggle to do it on your own. Make an appointment to fill them out with your loan officer. That way you won’t get stumped and you can hand them right in when you are done.

One loan application only! It is tempting to fill out more than one application to see who delivers what kind of service, but in this case you run the risk of having your credit run each time which reflects negatively on your credit score. You have already done your homework by comparing programs, rates, and lenders, so now just fill out your application and be done with it.

Lock your rate. If you get a good rate that makes you happy, lock it. Don’t keep shopping in hopes of a lower rate because they change quickly and you could end up paying more.

Lastly, the first thing you should do before looking at one single house is to get pre-approved. There is no point falling in love with a property only to find that you can’t afford the payment. Further, the farther along you are toward your loan commitment, the quicker the process goes from Purchase Agreement to closing!