New Home Purchase Loan – Top Five Things to Know
- Understand your home purchase loan options. There are lots of different purchase loan programs out there and not all of them are right for you. Do your research and know what you are getting into before you sign the mortgage loan paperwork. Remember that your mortgage loan officer is there to help put you in the best position possible and to make sure you understand. Let them provide you with the information, but make sure that you make the best decision for you and your family. Don’t let them pressure you into a mortgage loan that doesn’t feel right.
- When you find an interest rate you like, lock it in! Too many people make the mistake of trying to wait it out, hoping the mortgage interest rates will go lower. Sometimes they do and that always makes for a great day. But, more often than not, interest rates either go up or stay where they were. Keep in mind that the longer you search for low interest rates, the harder is it for the mortgage lender to get started on your home loan. And if you keep locking your mortgage loan and then switching lenders for a lower interest rate, you might never get closed.
- Get pre-approved for your loan before you go home shopping. This will let you know what you can be approved for before you look for a house, so you know where your boundaries are. This will also give you bargaining power if you find yourself competing with someone else for a home. If you are already pre-approved for your home loan and they aren’t, you might have an edge!
- Choose your mortgage loan lender wisely. Just as all mortgage home loan programs aren’t for everybody, the same is true for mortgage lenders. Make sure you go with a mortgage loan officer you are comfortable with and who provides you with the loan information you need to make the right choice. Your loan officer should be willing to answer any questions you have and take the time to sit with you and explain every little detail regarding your mortgage loan.
- Communication is crucial! It is just as important for you to communicate with your mortgage lender as it is for them to communicate with you. Once your mortgage loan process has begun, any financial changes or credit changes must be relayed to your mortgage lender immediately so that it doesn’t hold up the process down the road.
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