Before your first visit to our Folsom mortgage broker team, there are some things that you should know to make the experience as beneficial as possible. There are five things in particular that homebuyers need to be aware of in relation to the whole mortgage/house buying process, which I’ll share with you today.
Start by Calling a Mortgage Broker
This is one of the first steps you should take before you start looking for a home. A mortgage broker will not only be able to offer you packages that you won’t get direct from lenders, but they will also help you go over your finances so you know exactly how much you can actually afford. Some home buyers start off by looking at a home that they think they can afford, only to find out later on that they actually can’t. It can be disappointing, to say the least. Starting off with a visit to a mortgage broker will get you on the right track and keep you from wasting time looking at homes out of your price range.
Get a Good Team Together
This is something that you want to do ahead of time as well. A good team includes your mortgage broker, a trusted home inspector, an attorney, and a reputable realtor. It makes it easier to contact these people beforehand so that they are ready to go when you are. Otherwise, you could end up spending time looking around for good people at the last minute, which can prolong the whole mortgage process.
This is something I wish more people were aware of. You don’t need to have a 20% down payment to buy a home. This is one of the biggest hurdles many first-time buyers face. The truth is, there are many mortgage programs and options out there that will allow you to make as little as 3% of the down payment. You may need to have private mortgage insurance, however.
Another thing about down payments is when the money you are using is a gift. Underwriters tend to scrutinize any sudden large transfers into your bank account and you will need to have proof that the down payment is indeed a gift and not a loan you will have to pay back.
Keep Your Mortgage Broker in the Loop
Before you make any big changes or decisions on the road to buying your home, you should let your mortgage broker know. We know the in’s and out’s of financial regulations when it comes to buying a home. We are also the point of contact for lenders and underwriters should a problem arise. So it’s important that you keep us in the loop so there are no surprises that slow down the mortgage process.
Making Big Changes
I have seen this happen time and time again. The homebuyers get pre-approved for a mortgage and then make a big change before closing that jeopardizes the whole process. Doing things like quitting or changing your job or adding a new line of credit before closing are big red flags for lenders. It means they have to reassess your mortgage with the new details to see if you still qualify. The best rule here is to wait until after closing to make those big changes. It isn’t something that you can hide because the financial institution and underwriters are always on the lookout for discrepancies.
If you have questions about mortgages that you are unsure of, give our Folsom mortgage broker team a call today! We’ll help get you going in the right direction.