Buyers usually start their house-hunting process just after having saved up for a downpayment. It makes perfect sense right? But did you know that you need not wait until you saved up for a downpayment before talking to a mortgage lender? The following are the advantages of speaking with a lender even before you are years away from buying a home.
The Lender will give you a better idea of where you are financially.
During the pre-approval phase, the lender will review the financial documentation you submitted. It helps you set realistic expectations and become more mortgage-ready. They can help specify how much downpayment is needed, and they can even aid in creating an action plan so you can improve your credit score, therefore getting your dream home soon than you think..
The lender will inform you about the different loan types.
There are so many other loan types besides the conventional loan namely FHA, USDA, and VA. Perhaps you are not familiar with these loan types and they are the best sources for these types of information. They can help you figure out which one best fits you and let you know about the process and the steps you need to take in order to qualify.
They will inform you of the additional costs of a home purchase. Aside from the cost of the home itself, there are other fees to consider such as closing costs and mortgage insurance.
Here are some helpful questions to ask your mortgage lender:
- What is my interest rate?
- What are the closing costs?
- What is the minimum down payment?
- What documents will I have to provide?
- What is mortgage insurance?
- What will my monthly mortgage payment be?
- What could slow down the approval of my loan?
Knowing where you stand financially is key to making the home-buying process successful. Your local Realtor® can provide you with the names of some professional lenders whose programs may meet your personal needs. Since agents are constantly working with lenders to get deals closed, a real estate agent is a great source for a lender referral—especially for a lender that can get the deal closed in a timely manner.
If you or anyone you know is seeking to buy or sell, we can help. Feel free to contact the agents at Broadpoint Properties.