Secrets Lenders Donít Want You to Know!
Read This 11-Point Report Before You Sign Anything!
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| Negotiate a flexible loan. Some lenders will let you go from a variable to a fixed loan if rates start to go up. |
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The right or wrong decision when signing your home mortgage can mean
thousands of dollars difference in interest paid. There are very
important considerations to evaluate before you commit to a 15 or 30
year note. For many of us, our mortgage payment is the most
important financial decision we’ll ever make. Doesn’t it make
sense to know as much as possible about the financing of our
home? Take the time to thoroughly investigate all of your options!
Unbelievably many of us sign the first mortgage placed in front of
us. Typically the excitement of the new home purchase reduces the
mortgage to not much more than an afterthought. What you read
here could save you hundreds or even thousands of dollars. Your
real estate professional has established relationships with the top
lenders in your area. By aligning yourself with a professional
agent you ensure all the financial steps are taken care of properly and
economically.
1. Utilize a Lender With Established Ties to an Agent-
Lenders are much more flexible with the real estate agents who have
done business with them previously. Their relationship
establishes them as a team member. The lender and agent work
effectively together. That’s why a good agent can make
substantial difference in setting up the most economical
financing. And the right financing can, literally, save you tens
of thousands of dollars over the life of your loan!
2. Don’t Attempt Paperwork Alone-
All the paperwork required to complete the purchase of a home can be
quite intimidating and frustrating for a home buyer. Make sure
you have your lender help you with all the paperwork. Get help
from your team, your lender and agent. Their expertise will help
alleviate the stress and it will prove to be invaluable before you sign
your mortgage.
3. Look at All Your Options-
Make sure you see at least 3 loan programs for your mortgage.
Lenders have at least 5-7 programs and should work with you and your
agent on deciding what is best for your circumstances. Evaluate
all your options. After all, it’s your money you’re spending -
not theirs!
4. Demand Service-
There is little difference between a bank, savings and loan, or a
mortgage broker when it comes to the competitiveness of their loan
rates. The difference is in the service they provide. It is
their job to serve you! You want to get the loan approved and
move into your new home as quickly as possible, but don’t overlook the
fact that you are the one spending the money and they are the ones who
should cater to your needs. Don’t let the process become so
intimidating that you lose that understanding.
5. Stay in Complete Touch-
You should receive a written report from your lender concerning every
step. This will ensure that no details are overlooked and there
will be no surprises.
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| Be completely honest with your lender. Remember they get paid only if you get approved, and complete honesty helps them present the loan in the best light. |
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6. Negotiate a Flexible Loan-
Don’t just accept the terms they lay down in front of you.
Lenders are in the business of loaning money and they want your
business. Make sure you examine every option available to
you. If you negotiate a variable rate loan, many lenders have the
ability to move you into a fixed loan if rates start going up.
Make sure that you understand whether or not that is an option in the
package you are looking at.
7. Don’t Give Up on the First No-
Initial decisions are not always final decisions. Going to a
higher authority can sometimes get you the loan, but do so with the
assistance and compliance of your lender and agent. Many times,
special circumstances, when explained properly to the person in charge,
will win you the loan.
8. Don’t Wait for the Bottom of the Market-
The odds of your hitting the bottom of your market are about like the
odds of you hitting your state lotto! You will almost never hit
the bottom of a market. And trying to time it exactly right is
often costly. It usually causes a person or family to miss out on
the opportunity to purchase a very nice property. You’re better
off simply negotiating the best rate and terms you can at the time you
find a property. If interest rates go down, you can
refinance. This is a much better approach because you won’t miss
out on the property you’ve spent so much time locating.
9. Be Honest With Your Lender-
Your lender wants to help you with your loan. The only time they
get paid is when you get approved. The more information (good or
bad) you provide your lender, the easier it will be for them to get an
approval. It helps them present the loan in the best light.
This in turn helps the loan get the highest approval rating.
10. Become Completely Educated-
Pick your lender’s brain. Lenders will teach you all about your
various options, even if you haven’t found the right property
yet. They will be very patient with you while you are looking,
especially if you have aligned yourself with the right agent.
They understand all the up-front work will pay off in future
business. Your agent will then continue to refer people to the
courteous and service-minded lender on down the line.
11. Get Pre-qualified-
Lenders will provide you with a certificate of pre-qualification.
By getting pre-qualified, you know exactly what financial parameters to
stay within. Your agent and lender will consult with you and help
you get qualified for the loan that best fits your needs. Many
times, they are able to get you a larger loan than you may have thought
possible.
Getting approved for a loan is often much easier than you might
think. I sincerely hope this brief report has been a help to
you. If you would like a free, no-obligation consultation, call
Frank in our office at MortgageLinks: 718-494-8300 and tell him I sent
you!!
