(Part 2 of a 6-part series)
By Steve Fischer - Tradition Mortgage – Moline, IL
Welcome back! If you caught last month’s article we discussed the first of six critical errors you must avoid when buying a home – over shopping your loan. To recap, it’s best to work with a trusted loan officer who understands your unique financial situation. Why? Because it saves you time and gives you a clear picture of the best options for you.
So, what’s the 2nd mistake to avoid when looking to get qualified for a home loan?
Here it is: Trying to hide behind past financial difficulties. One of the most important services a responsible loan officer provides is to help you overcome past financial problems that can hinder your ability to qualify for your home loan.
OK, then how do you avoid this mistake? Easy. Provide your loan officer with the information needed so you can get the best terms possible. And minimize the impact of your past credit history.
Get this: if you’ve recovered from past credit problems you’re actually a better risk than someone who hasn’t had to face financial challenges. Overcoming past difficulties proves you honor your commitments and don’t give up.
Be open and honest in your one-on-one consultation with your loan officer. Why? So you can get a program matched to meet your individual needs. Don’t just focus exclusively and interest rate and closing costs. Take the time to let your lender know the ‘ins and outs’ of your situation. You’ll be better off in the end as a result.
I hope this helps. Happy house hunting!
Steve Fischer is a Licensed Mortgage Banker in both Illinois and Iowa. For more valuable home buying tips, visit www.own40down.com or call 1-800-882-1834, ext.2112 24/7 for a free recorded message to get your FREE copy of Steve’s Home Buyer Handbook, “The 7 Steps to Stop Paying Rent.”
For a free 10-minute video revealing the insider tips to boosting your credit scores,
(Part 4 of a 6-part series)
By Steve Fischer – Moline, IL
Welcome back! In last month’s article we covered the third of six critical errors you must avoid when buying a home – borrowing more than you can repay. You can save yourself a ton of grief. How? By giving yourself some breathing room when determining an affordable house payment for your budget.
Once you have this figured out, it’s time to focus on the next mistake you must avoid: not getting the terms of your loan in writing. Think about it. Buying a home will probably be the biggest purchase you’ll ever make. This makes it crucial for you to get a copy of all the documents you sign from your loan application.
Don’t be afraid to ask your loan officer any questions you have about any of the details of your loan. It’s critical you totally understand everything with a transaction of this size!
Here are some of the documents in your application you need to pay close attention to: the Good Faith Estimate breaks down your proposed monthly payment and closing costs. It also lets you know how much cash you’ll need to bring to closing, if any.
The Rate Lock Agreement describes the interest rate you’re being offered along with the terms of your loan. This agreement also tells you when the agreed upon locked in rate expires. You’ll need to make sure your loan closes by this date. So help your loan officer out by providing anything asked for in a timely manner.
Sure, there are other documetns in your application package also. But I want to stress this important point. Make sure all the details are explained to you in plain English – not ‘loan officer jargon.’ You’ll sleep a lot easier as a prepared and informed homebuyer!
I hope this helps. Happy house hunting! Be sure to check back here next month when we reveal one of the worst mistakes you can make when getting a home loan. It’s a ‘biggie,’ so you won’t want to miss it! J
(Part 3 of a 6-part series)
Hello again! In last month’s article we covered the second of six critical errors you must avoid when buying a home – trying to hide your past financial problems. Look, honesty is always the best policy. You’ll have a better chance of getting the best home loan program (made for your unique situation) when you work hand-in-hand with a trusted mortgage advisor.
So, what’s the 3rd mistake to avoid when getting a home loan? Here it is: borrowing more than you can repay. Sure, you may have to stretch your monthly budget a bit to afford the home you really want. Or even make some smart changes to your spending habits. However, you’ll put your entire financial future in grave danger by buying a home you simply can’t afford.
You’re better off setting yourself up for success from the start. Don’t put yourself in a spot where you could be forced to sell. Or forced into bankruptcy or foreclosure. So, how do you go about doing this?
Easy. By being prepared…and patient. Buy a home you can comfortably afford without putting a huge strain on your monthly budget. You can always move up to a larger home down the road as you’re needs change. Give yourself some ‘wiggle room’ and stay a bit under the highest payment you qualify for. Then you can build equity faster by paying extra on your loan each month. You’ll also have some breathing room to account for any unexpected things that are bound to happen.
(Part 1 of a 6-part series)
“Over shopping” carries a high price!
Are you looking to get qualified for a home loan? It’s natural to want to be sure you qualify for the best terms available. It’s also a pretty daunting experience – considering the endless options available. It’s true. There are literally hundreds of choices out there. So, what should you do?
Avoid Mistake #1: Over shopping your loan. Why? Because every time you call a lender seeking the best possible rate and terms for your home loan, your credit report gets pulled. This factors into your credit scores. Which (you guessed it) decreases your overall score and lowers the chance of getting the best deal. Ouch!
Speaking of credit scores…in case you haven’t heard, credit is a little bit harder to come by these days as result of the ‘subprime mortgage meltdown.’ An increase in foreclosures nationwide has caused home values to drop…and credit standards to tighten.
Taking control of your credit and making sure it’s the best it can possibly be is vitally important. Now more than ever! I’ll show you some free ways to educate yourself in a minute. But first…
Back to ‘over shopping.’ How do you get around it and make sure you’re doing the right thing? Here’s how…
By having a one-on-one consultation with your loan officer so you can get a program matched to meet your individual needs. Don’t just focus exclusively and interest rate and closing costs. Take the time to let your lender know the ‘ins and outs’ of your situation. You may even find a better program than the one you were shopping for!
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