Are you seriously shopping for a house? It doesn't matter if you have done this before or even if you are a first time homebuyer.
If you have bought before, don't think it's the same way as once before. The market changes every day. Mortgage programs can change at the blink of an eye. First time home buyers, just because your friend or family member had an easy time when they bought their house doesn't mean that it could be as easy and or simple as their purchase.
The number one rule of advice, try and get a referral of a good loan officer before you head out into that jungle. You want someone that is going to take the time to educate you while giving you options and not someone that is worried about their own pockets. Make the effort to obtain a pre-approval.
What is a pre-approval? It's one step ahead of being pre-qualified. This is a must read. The difference between a Pre-Approval and a Pre-Qualification letter.
For a short breakdown of this article, a pre-approval is worth a hole
lot more in most cases than a pre-qualification. You actually go
through the process of buying a home without having a home in mind and
or contracts. Why is this a good choice?
- -- Right now, it's a buyers market for the most part. If you place almost the same bid on a property, but your did/offer is accompanied by a pre-approval letter instead of a pre-qual letter, you might have a better chance. (I have had clients in the past whose offer was slightly lower, but it was still accepted because they were approved already) There are many reasons why for this.
- -- Many programs have been changing as of lately and it's a good idea to see what you can be approved for now instead of later.
- -- If you are a buyer that doesn't have much money to work with and possibly average credit, you might need 100% financing. This can only be approved by an online service and not by the naked eye. Better to know now than later.
Overall, understanding your options and how the financing process takes place is the most common mistake made amongst buyers. No, I am not saying that you need to be an expert. But why not become slightly educated on how the process works? Why not be one step ahead of everyone else.
Conclusion : What I am about to state is from experience and past clients. This just happened again as of today. Keep these next few thoughts in the back of your mind as you seek a professional in the mortgage industry.
- Don't fall for those that don't spend much time with you asking you questions and your goals. This is so key.
- Watch out for someone that acts as a true sales person. Someone that uses such words as or phrases as : "I promise", "I guarantee", "don't worry", "not a problem", ...and some of the worst? "I am the lowest", "I have the best rates and or fees".... and "TRUST ME".
- Don't fall for someone that says they will take care of you just because they are a manager or possibly the owner. They shouldn't have to use their title to make you feel comfortable or like you will get a great deal. This is sometimes called sales.
- A good faith estimate that is actually missing lots of information or figures if you are shopping this form.
- A good faith estimate that is partially hand written and the rest typed in.
Overall, use your gut feeling at times. Don't be afraid to ask many questions. And if you get someone that is hard to reach, this could be a red flag. Especially once you start the process with that loan officer. If they were easy to reach prior to application, but now don't return calls or e-mails like they did in the beginning... BIG RED FLAG.
For more information on how you can obtain your dream home, please click here : Mortgage Financing Options
For those seeking an FHA Expert, please click here : The FHA Expert
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