There are 5 things to consider when purchasing a property as a first time home buyer. Before picking out your dream home, you need to know a bit about the mortgage process. The difference between qualifying for your first time home buyers loan, and not meeting just one of the qualifications, could leave you disappointed. However, there are different programs available to help you with your first home purchase.
Use “Surprise” Money Wisely: Perhaps an inheritance from a deceased loved one or a bonus from an employer comes your way. Since this money isn’t something you were planning as part of your budget, plan to put that money toward your Ravenwood Services Remortgages payment. By using this extra money wisely, you can save on your mortgage payments and repay it much more quickly.
Will I get a copy of the appraisal, title commitment, and credit report? Note: Some, but not all states require the Mortgage broker to give you a copy of the credit report that they have pulled. If they are not allowed to give you a copy they must at least give you a form that shows the credit scores on your report.
One of the benefits of doing an online mortgage quote is that it can give you a rough idea of what you may be faced with in regards to your mortgage payments. In addition, this can help you decide whether you are ready to book an appointment with a mortgage adviser or broker. If the payments are too high, maybe you need to save more money for your down payment.
If the broker is being paid by the bank, does this mean the cost is passed on to you? In most cases, this is not the situation. The interest rate and points on a loan are usually the same regardless of whether you go through the loan process on your own or through a broker. Why? Banks generally consider points to be a profit center. While they do not like to give away profit, they also know that mortgage brokers will bring in large volumes of business than a single loan. Essentially, they bank trades off the fee to the broker in exchange for the money they know they will make over the life of the loan multiplied by the volume of loans the broker will bring in. In simple terms, it is a trade off.
A bank really does limit your options in terms of finding a home loan. Some people immediately assume that their local bank is their best bet. While it may be true that you’ve done business with the bank in the past – and may even have accounts with them right now – that doesn’t mean that they will be able to get you the best deal. You can be sure that the loan officer will tell you it’s the best deal, but you’ll have no basis for comparison. If you’re fond of having options, then, bank lenders aren’t right for you.
When it comes to finding a good broker, look for those who are not employed by any mortgage company. Self-employed brokers incur less overhead cost so the origination fee might be enough for them not to go after the yield spread premium.