For most of us, shopping for a new home also means shopping for a home mortgage. In both exercises, you'll want to be a smart shopper. Working with a real estate agent, you can find a house you'll love. And while it's not likely you'll actually "love" your new mortgage, here are seven secrets to make sure your financing needs and the lender you're considering are a good match. Then see the box inside about finding the right mortgage for you and for more tips on how you can buy more house for less money, call today!
Mortgage Pre-ApprovalA no-cost, no-obligation pre-approval before you start house-hunting can save you big time; the seller knows you're a "cash buyer" and may favor your purchase offer over another. Find a lender who offers pre-approval. That's not the same as "instant approval," which is often an approval loaded with qualifications; or a how-much-can-I-afford "pre-qualification" estimate, which doesn't give you the same bargaining clout.Quick Loan ProcessingSome lenders offer mortgage approval in just 5 to 7 days and others use electronic underwriting to give same-day approval. Ask. This quick turnaround could get you to settlement sooner, which may make you the most attractive potential buyer to your seller and may mean less time in temporary housing.
Flexible Underwriting Guidelines Some lenders, for instance, count the earnings of a spouse who doesn't yet have a job in the new location but has at least a two-year work history. That kind of flexibility may make you eligible to purchase the home you want.
Variety Of Mortgage ProductsPerhaps you’ll do best with a short-term mortgage or an adjustable-rate loan. Find a lender who offers a selection of mortgages and even unique mortgage products that suit your situation best.
Rate-Lock OptionsFind out what rate-lock options are available from the lender. The shorter the lock time – that is, the shorter between when you agree on a mortgage rate and when you actually go to settlement – the lower the interest rate you’ll have to pay.
Negotiable Loan FeesShop for a lender whose fees are reasonable. Ask about all charges, such as a “commitment fee” or “underwriting fee” or “processing fee.” Mortgage lending is a competitive business and lenders sometimes will negotiate fees to get your business.
Every purchase requires an effective three-member team: buyer, real estate agent and mortgage lender. Work together with a real estate agent who specializes in your area to find the house that’s right. Team up with a lender who can make sure your loan maximizes your buying power and is right for you. Make the most of your home-buying team and everybody wins.