Over the past few weeks, I have had the pleasure of talking to some first-time homebuyers and some seasoned homebuyers, and both ask a lot of great questions. There are so many ways to approach becoming a homeowner that the task itself can be daunting. Questions about your home loan are always important to ask to better understand all your options. When you are a first-time homebuyer, you do not always know where to start the process, so reach out to a trusted lender and simply ask, “I am ready to be a homeowner, how do I get started?” Starting the process by talking to a lender to be pre-approved is normally the best approach to becoming a homeowner.
“Why should I be pre-approved first?” That is a great question I am glad you asked. Being pre-approved before beginning your search for a home helps you be in the running when you want to make an offer. If you are not pre-approved, how could you reassure sellers that you can afford their home, so unless you can pay cash for the home be pre-approved from the start.
Making that offer to a seller stands out above the rest. Here at Ross Corporation, The Matthew Stevens Team has a Guaranteed Pre-Approval program – if we do not close your mortgage loan the seller receives $1,000.
Next up, ask about your options. There are several products available for different types of purchases.
If you want to rehab a home after purchase but do not want to pay out-of-pocket for all the repairs, ask about loan products that can help.
Looking to purchase a home in a small town? You should be aware of USDA loans that are specific for rural areas. Understand your options.
Next, do not be afraid to ask how your loan officer gets paid. Different companies have different compensation plans, so knowing how they get paid to be sure they are working with your best interest in mind is important. Asking that question could lead to a conversation about your rate. Before buying a house and getting into the mortgage industry, I always thought your rate was what they give you and that it was as good as you could get. That could not be further from the truth. You want a lower rate, ask about how much it would cost. You can choose as long as you have the money to pay for it. On the other hand, rate is not everything. Rates can make you have a lower payment but what is this mortgage insurance about?
Personally, I get paid a percentage of the total loan amount of the house that is purchased. I am always interested in your best interest because I get paid when you close on your new home. I want you to have the best rate possible, because that is what is best for you, your family and your future. No matter the amount of the home, I want to help you achieve your dreams of homeownership. If I take care of you, then you refer me to more people, and I make more money by helping more people achieve that same dream.
Depending on the loan product and the amount of the down payment, some loans require mortgage insurance. Mortgage insurance is an extra security measure for those lending the money to get their return. So, be sure to ask would it be better to bring a larger down payment to not have mortgage insurance on the loan or to buy down my rate?
Lastly, what if you have gone through the pre-approval process and your credit score is okay but you wanted to buy more house than what you got qualified for? Ask your loan officer if they have anyone that can help with credit repair. Sometimes all it takes is paying down a credit card or loan to boost your score to be able to buy more house. Even though you may want a house right now, waiting for your score to improve a bit to be approved for your dream home is worth it.
In this industry it is easy to find just any lender. Protect your family and your future by asking questions. You are the borrower, you are buying the home and making the payments. Be sure that you are happy with the terms of your home loan before committing.
My name is Taiya Bagby, I am a Mortgage Loan Officer with The Matthew Stevens Team at Ross Corporation. Lean on me for support to answer your mortgage loan questions and help you through the process from beginning to end. Call me at 270-772-2038 or email me at tbagby@rossmortgage.com.
-by Taiya Bagby
