The mortgage loan process can be, at times, intimidating. Where do you start?? What do you do next?? What happens if you make a change?? Amerifirst Home Mortgage has been kind enough to provide everyone a quick guide to some pitfalls that you can come across during your mortgage loan process. We have to agree with what they're suggesting.
Getting pre-approved is an important first step in the home buying process. It allows you to better gauge how much home you can afford as well as gives you buying power. No one wants to accept an offer from someone who thinks they may be able to get a mortgage loan. You also don't want to fall in love with your dream home only to realize that you can't get it or sell yourself short.
Working with professionals in your area will give you wealth of knowledge, insight, and experience. The home buying process can have many hurdles so working with professionals will give you the support you need to get over them. The right professionals will be able to troubleshoot issues before they arise.
Keeping open lines of communication and keeping everyone in the loop is always a smart idea. You'll want to make sure that you know where you're at each step of the way. You may need to sign an additional document or have another inspection done in order to secure financing on your home. Staying in the loop will allow you to take care of things like that quickly and efficiently so that you don't hold up the purchase of your home.
Make sure you plan ahead to tax time. Not all home payments include taxes and insurance. You don't want to be blindsided by a large tax bill so make sure you know what taxes will be on your home as well as whether or not they are included in your payments.
Ensure that you are able to track all money associated with the purchase of your home. Try to avoid using cash and utilize personal checks during the home buying process so that you have something in writing to show where the funds came from and how much they were.
Start saving some extra money. You never know what may arise when purchasing your new home and it's a good idea to have some extra funds on hand so that you're ready for whatever may happen. You may make it completely through the purchasing process only to have a pipe burst after you get moved in. Avoid other major purchases while you're in the home buying process. You don't want to decrease your buying power.
Stay with the same employer until you have closed the loan process. Showing that you have a steady income is an important factor in getting a home loan/mortgage. If another opportunity arises you may want to wait until your loan has been closed before moving on. You may be offered more money but your lender will want to ensure that you will have more in the long run.
Keep current payments up to date and current credit lines open. You want to continue to demonstrate that you are able to wisely manage your credit accounts. You also shouldn't close any lines of credit--even if you pay them off. Closing them could actually negatively affect your credit score. I know it goes against what you would think but look at it this way: more available credit (ie paid off $1000 line of credit) is a better debt to income ratio.
Let's revisit tracking money--expenditures and credits. Your lender may get concerned if they see a large cash deposit added to your account that they don't know where it came from. Make sure that you have documentation of all your income so that you are able to prove that you did not get another loan.
Continue to keep good records and communicate with your lender. You're going to need to provide lots of information so make sure that you provide it all to your lender and don't leave anything out.
Prepare for the costs associated with obtaining a mortgage loan, commonly referred to as closing costs since they are paid at the end when you complete the mortgage loan process. Make sure to ask your lender for an estimate, they'll be able to give you a pretty accurate idea of what it will be.
These are just some helpful guidelines to assist you through the mortgage loan process. Your lender and real estate agent will be able to offer you other valuable insights in the process.
Author:Skye Streppa Phone: 828-713-5690 Dated: September 30th 2016 Views: 90 About Skye: Skye Streppa is an Asheville native who holds a wealth of local knowledge and a depth of character f...
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About The Streppa Team | RealtyAsheville.com: Homes for Sale
As a native of Asheville, NC, Skye has an unparalleled understanding of the local market and area. Honesty, integrity and a hardworking spirit are the very tenets that ensure Skye gets you the very best deal in every real estate transaction. That very business model has led to Skye Streppa being a multi-million dollar producer for Keller Williams for nearly 10 years running.
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"April 12, 2016 Dear Mr. Stevenson: It gives me great pleasure to write this letter of commendation and thanks on behalf of Rachel Alosky. My husband and I recently purchased our new home in Candler and Rachel was our agent. I can't say enough positive things about her and the way she gently guided us through this arduous process. We were nervous and apprehensive about the process because we live so far away and don't know a lot about the area. But from the very beginning it was clear to us that we had, by divine providence we believe, come to be in the care of the most excellent person to help us reach our desired goal. Certainly you must already know what a gem Rachel is. She demonstrated herself to be a highly skilled professional who displayed so many of the qualities that we hold dear, such as incredible knowledge, patience, honesty, reliability, responsiveness, integrity, and courtesy to name a few. She is mild-mannered and even tempered and always followed up and followed through on every single detail that we discussed. She generously shared with us information that helped us to make the right decision for us. She was always available and willing to go the extra mile for us and with us. We came to trust her completely, something that we New Yorkers are not quickly prone to do. We learned that she would always look out for our best interests. Rachel never disappointed us. In fact, she continued to amaze us with her awesomeness throughout the process. Frankly, I will miss dealing with her on a regular basis. She's a most remarkable young woman! I could go on and on about the many benefits to us of having had Rachel represent us, but I think you get the point. Please know that we would never hesitate to recommend Rachel and your firm to others when the opportunity presents itself because of our experience with Rachel. Thank you. Sincerely, Rose Walker-Yates"