Searching for home loan brokers can be daunting. The average consumer has no idea what questions to ask in regard to the purchase or financing of their dream home. Home loan brokers are equipped to inform and guide the consumer through the arduous home finance process. We have obtained the following steps as a resource for prospective homebuyers.
The mortgage finance industry has been challenged over the past couple of years to say the least. Those mortgage brokers who have managed to not only “stay alive” but thrive through the challenges are customer service driven individuals. Additionally, they provide road maps for their customers. In an interview with a successful loan officer we have been able to find a few steps (that they provide for their customers) that make them successful.
1. Find the amount that you can afford to borrow. The monthly payment on your first mortgage will be only part of your monthly housing expense. You’ll also have to pay property taxes, homeowners insurance, and repair and maintenance costs. Make a budget and stick to a mortgage payment that you can afford. New home calculator and mortgage payment calculators can help you estimate the payment and come up with 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 with your loan officer about current rates. If you’re worried that rates might rise before your loan closes, ask the loan officer about an interest rate lock, which can ensure you’ll be able to get the rate you were quoted.
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 fit your needs. The home loan broker that offers the lowest interest rate might not offer the most hand-holding or best service — two benefits you’ll probably want when getting a first mortgage.
4. Save for a down payment. You’ll need to make a down payment to get a first mortgage. If your down payment is less than 20 percent of the purchase price of the home, you’ll also need to pay for mortgage insurance, which protects the lender in case you default on your loan. Some loan programs, like FHA, allow you to use a gift from a family member or other source as part of your down payment.
5. Have all of 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 in advance will make the process easier.
Home loan brokers provide a map for the individual to follow. Additionally, home loan brokers act as a tour guide. The right tour guide will be willing to spend the time making sure that individuals fully understand their options.
The tips above were provided by Tanya James of Caltexfunding. For more information regarding home loan brokers, mortgage protection, new home calculators or mortgage payment calculator see the caltexfundingresource site and search Tanya James resource.