There are many important steps in the real-estate-buying process; most people understand the basics. Talking with a real estate agent, for example, is crucial to finding access to the best homes and working to get the best deal on a house, which doesn’t always mean strictly a good price. (A good agent can help with other areas, such as spotting potential red flags in a home.) Most people understand that this is a basic step in the process.
Some steps, unfortunately, get skipped altogether.
A talk with a loan officer is one of those steps. When you speak with a loan officer, you are giving yourself the chance to find the right financing for your specific needs. Talking with a loan officer makes you an informed, confident buyer.
These are the reasons why you should speak with a loan officer before purchasing a home…
Loan officers can help you in many different ways, but having a deep conversation with these professionals will most of all help you understand all the different loan products that are available to you. From conventional loans to complex jumbo loans with minimal down payments, having all the options laid out in front of you is a great way to fully understand all the available choices.
A good loan officer will understand that each buyer has unique needs, and they can show you all the various options that best fit your situation. You can look at options that include FHA loans, or you can explore types of loans that are only available in certain situations, such as VA loans (only available to military veterans and qualifying family) or USDA loans (only available for homes in certain rural and suburban areas).
You could also get information on 15-year vs 30-year mortgages, or ARM loans vs fixed-rate loans. All of this information helps you make a better choice when buying a home.
As the saying goes, knowledge is power. When you are an informed buyer who understands all of your options, you are more likely to make a choice that is best for you and your family. Quite frankly, mortgages can be complex and confusing; if you’re not informed you may make a poor choice for your financial future. Having a variety of information also makes you a better home shopper and buyer, so you’ll approach each house with greater confidence.
There is nothing worse than finding your dream home only to discover that you are not qualified to borrow enough for the purchase. A loan officer can walk you through the numbers, helping you understand your price range for homes. A good loan officer can also explain the benefits, and downsides, of certain loans, such as 0%-down or low-downpayment mortgages, which are available through many lending offices.
Being pre-approved for a mortgage loan is not an official offer for a loan. It is, however, a statement by the lender that if nothing were to change in your personal situation, you would be able to get the loan you need.
What we mean by that is that if you maintain your job and don’t take on any more debt, you will be able to get the loan you need for a certain purchase. Having this pre-approval from lenders shows borrowers that you are serious about your desire to purchase a home, and that it’s worth the time and effort of the seller’s agent to show the house. Some seller’s agents, in fact, won’t even show homes unless the buyer has been pre-approved for the purchase.
Earlier, we briefly mentioned downpayment requirements. Going into a purchase without first understanding the amount of money you’ll need for a downpayment can lead to major disappointment. When you talk with a loan officer, you’ll know how much you need to bring to make a certain purchase, eliminating any future surprises.
Purchasing a home, even without a mortgage, requires a lot of paperwork and documentation. If you want to breeze through the process as quickly as possible, it helps start early. When you work with a loan officer, much of the paperwork can be handled ahead of time, which reduces that hassle and stress when it comes time to actually make a purchase.
Perhaps the most important aspect of all, when you speak with a loan officer, you are able to find the specific mortgage that fits your needs. A good officer understands that each client has different needs, and that some products are better suited for certain buyers.
For example, if you do not have a large downpayment, a loan officer could guide you towards an FHA loan, which comes with the possibility of a downpayment as low as 3.5%. Or, if you need a house that is larger and more expensive, a good loan officer can help you get approved for a jumbo loan, even one that comes with a minimal downpayment, allowing you to purchase the home you desire with a minimal initial investment.
Many people qualify for downpayment assistance or other programs and don’t even know it. When you visit a loan officer, you can get information on available assistance that is provided by state and local governments, as well as local non-profit organizations.
Some people don’t realize that loans can take a while to close. This timeframe, which could last a month, will not come as a shock if you talk with a lender beforehand.
Talk with a trusted loan officer today! Chad Baker and his team are ready to serve your needs, so contact us soon and you’ll get the loan information you need to make the right choice for your future!
“Chad and his team were Awesome to work with! I was referred to Chad by a good friend of mine. I was very impressed with the professionalism and quick response times from Chad Baker & his team during the entire process. I screened over 3 lenders before selecting the Chad Baker Team and I’m confident I made the right choice. It’s obvious that customer service is their #1 priority and it shows. I highly recommend Chad if you have lending needs.”
I hope you enjoyed reading this article. It’s my goal to keep you updated with the latest real estate mortgage news. I’m proud to provide you with 100% original and unique content. Subscribe now to get high quality real estate mortgage content and articles delivered directly to your inbox. Chad Baker is Regional Manager for LendUS. Chad is consistently recognized in the top 1% of mortgage originators in the United States 2011-2017. Got a question for Chad? Call (858) 353-8331 or submit your question online