Advanced legwork helps ease the stress and ensures you’ll get the best deal on your mortgage.
Almost everyone planning to buy their first home in 2016 will need a home loan to do it. It is much easier to prepare for the loan process before you select a property and have your offer accepted by the seller. You don’t want to find yourself shopping for your home and your mortgage at the same time especially in a hot CA real estate market.
Over half of all first time home buyers don’t shop for their home loan; they settle on whatever is offered to them first. This is often because they have put the proverbial horse before the cart. In a market that can seem to have more loan options than available properties, it is especially important for the first time home buyer to have gone in search of their loan before house hunting. Once a first time buyer has “locked” onto a particular property and had their offer accepted by the seller,excessive pressure is going to be applied at every turn.
Mike Kagan, President of Elite Financial a Westlake Village California, suggests that people find a home loan professional to work with before starting the home search. Having been a leader in the industry for over 25 years, he knows what it takes to make buying your first home an exciting and successful milestone for the inexperienced home buyer. Any of the top producing realtors that Kagan works with regularly, advise all of their buyers that will need a loan for the purchase to select a mortgage professional with whom they are comfortable and start with an in depth consultation. A professional evaluation of the client’s standing with respect to the relevant criteria is critical for the first time buyer to position themselves for the best deal on their home loan.
The buyer should leave this consultation with a step by step game plan designed to cure any of the potential barriers for loan approval and optimize their credit and financial profile. The loan consultant not only provides the necessary guidance to save wasted time, energy and expense by taking out the guesswork, but they have tools that can facilitate and expedite the desired results. Without this upfront work, it is just a set up for disappointment. For some potential buyers, the prequalification will result in the greenlight that they are ready to start seriously scouting for a property with their realtor.
You need to provide the necessary evidentiary documents for the first evaluation, and then you may need to update that documentation once the goals have been achieved. There are ranges for all of the criteria within which you may be approved for a loan, but for the best terms, you will need to be at the top of all of those ranges. You may elect to allow for some compromises in areas that would take longer to achieve excellence if there is an urgency in completing the purchase. Remember that those decisions will have an effect on the interest rate and/or fees involved.
In selecting a loan professional you want to talk to people and not just fill out an online application. With as many variables as there are today in the loan qualification, this is not best left only to automated processes. All creditble mortgage brokers and lenders strongly suggests making an appointment with your loan officer to conduct this kind of in depth pre approval, whether via a phone conference or in person. In doing so, you will get a head start on the following:
1.-You can improve your credit standing.
By having your credit evaluated by a proffesional loan officer, they can help you systematically plan a course of action that can often substantially increase your credit scores in a relatively short period of time. Your credit scores or creditworthiness are one of the 3 most important factors in determining what your interest rate will be.
2.-Understand the variety and compare available of loan options.
Many lender’s, including Elite Home Loans provide descriptions of each kind of loan product on their websites. This can be a helpful place to start making determinations about what loan will work best for your future plans; however, here again, in conversation with your loan professional, you can clarify any questions or illuminate your understanding in greater depth. You may seek their qualified opinion as to the benefits of each type of loan in your given situation.Here are a few of loan options to compare.
3.-You can increase your savings sufficiently to impact down payment, cover closing costs or meet reserve requirements.
This is an area of the loan process where there is quite a range in terms of requirements as well as needed documentation. This is not a place where you want to have any mistakes or be unprepared for the requirements. There are several available options in the marketplace to assist first time buyers with their down payment. The applications for these funds are often confusing and lengthy. If you need and qualify for one of these programs, this is truly a place where the guidance of an informed professional is a must.
4.-Work from a realistic budget and projections.
As a first time home buyer trying to plan and perform without the guidance and insights of a pro, is a problem waiting to happen. You don’t want to enter a purchase transaction having underestimated the costs involved or ending up with a monthly payment that is simply too for you to have committed to because you bought more than you should have. This is a set up for failure for the first time home buyer. You need to know what is coming your way and all of your options.