Rapid City

I’ve learned a lot about lending over my years in Real Estate and although I am far from being an expert (it’s always wise to consult with a mortgage lender, who is an expert), I have quite a few little tips and tricks that I think are helpful when thinking about buying or selling real estate

Tip 1: First and foremost, before you start looking into making a real estate purchase, consult a mortgage professional first. If you don’t know how much you can spend, you are starting the process completely blind. It’s not as simple as starting with what you think you can afford and then working backwards, especially in this time of tougher mortgage lending, strict-debt-to-income ratio guidelines and down payment requirements.

Tip 2: Make sure you get information on ALL the mortgage possibilities out there. Be sure and ask your mortgage professional what all the options are, even if he/she cannot provide them. A lot of mortgage professionals will tell buyers that they are not qualified for a loan, when in actuality they are simply not qualified for a loan with them. There are specific programs out there for first time homebuyers, low-income buyers, buyers with low credit scores, even buyers with certain professions. If you hear “no” once, don’t give up. Try another lender and keep asking questions until you are confident in the answer you receive.

Tip 3: Ask about charges so you don’t have surprises at closing. Just like real estate professionals, lenders and mortgage brokers get paid at closing and they definitely earn their dollars throughout the process. However; nobody wants to be surprised at the closing table, so make sure you know if your lender charges 1% of the purchase amount, has additional recording fees, etc. In fact, all lenders are required by law to provide a truth in lending statement that discloses all this information, so be sure you receive one and that you go through it carefully.

Tip 4: If you’re not sure where to start in finding a mortgage professional, get a referral from someone you trust. I always have a handful of names available and can tell help you find someone based on the type of home you are buying, whether or not you’re a first-time buyer, etc.

I hope these tips and tricks help with some of your basic mortgage questions. Again, I’m hardly a professional in this area, but these ideas should be enough to get you started. As always, call me anytime with questions or for additional information.

Tags: Mortgage Tips

Posted on Wednesday, July 1st, 2009 at 5:58 pm and is filed under Buy a House, Homes, Lending, Mortgages. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.