Unless you’re a super wealthy person, you’ll be taking out a mortgage when buying a home. Unfortunately, it’s not just the first-time buyers who don’t have the most honest of experiences, but also some of the seasoned buyers as well. With the mortgage being one of the most important of your investments, Suzanne Powers feels it is high time individuals take charge and be the savvy borrowers of these loans.
Surprised? You don’t just have to accept the first quote that comes your way. Rather feel free to shop around, asking questions and requesting for the best terms, than saying yes on the instant the lenders tells you have qualified for the loan. Rates and loan fee vary from one bank to another.
Extras Don’t have to be Part of your Deal
True, you asked for the best deal, but you have to bear in mind that they these individuals are here to make money and that it’s all about how well their business is in the end. The mere instance where your lender is offering the financial product full of extras doesn’t automatically make them the best fit for your case.
A High Credit Score isn’t Necessary
A majority of mortgage lenders ask the minimum scores to be more than 650. Most people that Suzanne Powers has come across have this idea in mind that they will not be granted the loan if they have had credit problems previously. If private loan is not your territory, you can opt for the government-backed loan such as the FHA mortgage program with its more lenient terms.
The Rate Lock on the Interest is no Guarantee
Another important aspect that most lenders apparently miss from telling you includes that the rate of interest and discount points are applicable for 60 days generally. Beyond that, they can increase. The adage “time is money” stands valid in this point. Ask upfront and stay informed. Once you’ve chosen to lock the rate, provide the lender with the due financial documentation as needed.
The Final Decision Rests with Appraisers
A lot of people are disappointed when they fail to get the approval for the mortgage despite recording perfect credit score and a successful overcoming of issues related to credit, income, and debt. This is the moment where they get to know the house didn’t receive positive opinion from the appraiser who enjoys absolute power within the industry.
Worse is knowing that your desired property was given an inaccurate appraisal because the individual wasn’t familiar with your neighborhood. If it’s not according to your expectations, consumers have recourse.
Applying for mortgage is a complicated and overwhelming process. It’s not just the loads of documentation, but the fact there is so much that you do not know, which makes people confused and nervous and therefore end up making the wrong decision. The best way to deal with is to try to have a clear understanding of the pricing, the entire loan process, and general rules not just prior to applying but even during the transaction as well.