Getting a home loan? Key Questions to Ask Your Lender.
Categories: Chattanooga Real Estate News, For Home Buyers, Mortgage and Finance
By Kacey Sides, Realtor, Buyer Specialist with Andy Hodes & The Scenic City Team
Need a home loan? Not long ago, that was the easy part of the home buying process. It seemed if you had a pulse, you were approved for a home loan . . . Not anymore! After the recent surge of foreclosures, alot has recently changed in the morgtage industry. Thus making who you choose as your lender that much more important!
A lender, educated in their constantly-changing industry, will keep more money in your pocket. There are still tons of great programs available for people with qualifying jobs and/or income. A lender that is aware of all the various programs for which you qualify can potentially save you thousands of dollars at closing and over the term of the loan! Ask your Realtor for a list of the most-qualified lenders in your area.
Before you lock in your rate, shop your rate! Meet with a few lenders so you know your options. Not all lenders have the same programs, or the same APR. The APR includes the rate you are paying plus all the lender required closing costs and can be the real kicker. The APR plays a large factor in what you ultimately really pay. If you find a lower rate or APR, and you have built a relationship with a specific lender, give them the opportunity to meet or beat it; you’ll be glad you did.
Many of the underwriting requirements have changed in the past few years, even in the past few months. So whether you’ve gone through the loan process before or not, going through the steps and potential up’s and down’s help eliminate last minute surprises.
If you are curious as to how mortgage rates are set, what affects them and the analyst’s outlook on where mortgage rates are going, please check out the Daily Mortgage Commentary on Moving.com. There’s a link on the right sidebar of our blog under the “Finance” heading. This commentary is a great summary of what’s happening that affects the rate you’ll pay.
Keeping the lines of communication open between you, your lender, and your Realtor can make the road to owning your home a little less bumpy, and a nice place to park your car!
With all the hysteria out there about mortgages, this was very calming. If I were hesitating about buying a home, this post would probably encourage me to at least check out the options. Good job!