Now that you have started on your journey towards homeownership the first thing you need to do is Get your Financing First! What does this mean? This means if you are planning on buying a home with cash or with mortgage financing. Talk to the Real Estate Professionals at Advice Homes Real Estate Services LLC. They will recommend you to the best loan officers in the market who will not just qualify you for a home loan but help you get in the best package to meet your goals and budget.  However remember you are the final deciding factor on who is your team of experts.  You are free to choose to work with any Mortgage Company of your choice.

Once common misconception about getting a mortgage is the bank does not give you the mortgage. In fact it is the buyer who gives the mortgage to the bank in exchange for a note or loan. The mortgage is what makes the home the collateral for the loan.

Choosing a Mortgage Company

So how do you know if you are getting the right Mortgage Loan? Surround yourself with a team of experts who can guide you. Get recommendations from your REALTOR® and interview several loan officers. Did you know there are different types of loan officers? When selecting which Mortgage Company to work with find out if they are a Mortgage Banker or a Mortgage Broker.

• Mortgage Banker: Mortgage Bankers will offer you special programs for the bank they work at. They tend to have more limited number of loan options for you to choose from but may have more direct influence on the approval.
• Mortgage Broker: The Mortgage Broker will offer you many loan options that are available at many different banks. They will give you the greatest number of programs to choose from.

Different Types of Mortgage Loans

There are many different types of Mortgage Loans you can choose from each with its own unique benefits and financing restrictions. Choosing the right mortgage program is key to being successful with buying a home. These include FHA, Conventional mortgages, or a VA Entitlement Loan. Which of these programs you are qualified with is often dictated by the amount of down payment you have, your credit score, differences in interest rates, the type of home you are looking to buy, and if you have ever been in the Active Duty Armed Forces. Also always consider asking if there are any grants, classes, or special programs that can help provide down payment assistance or reduced interest rates. This is most important when you are a First Time Home Buyer as there are many First Time Home Buyer Programs available.

What do I need to bring with me

When qualifying for a mortgage you want to collect some paperwork to help the loan officer determine how much they can qualify you for. These include:

Asking the Right Questions:

Asking the right questions when you meet with your Loan Officer will help both you and your Loan Officer find the right program that will be in your best interests. Always consider not what is the maximum you qualify for but what monthly payment are you comfortable with and how much will that payment qualify you for. Other things to consider asking include:

• Are you a licensed mortgage broker, a mortgage banker, or both?
• Will I receive a loan estimate, and will it disclose fees that I must pay out of pocket?
• Do you have automated underwriting, or does my file need to go through a full underwriting process?
• Do you have a local underwriter?
• What are the approval conditions?
• How far in advance before closing does the mortgage package go out?
• How long does the full process take?
• Are you using a local appraiser? What is their time frame?
• Do you guarantee your closing date and closing costs?
• When can I lock my rate?
• Will there be any pre-payment penalties?
• Do you offer and special programs, grants or first time home buyer programs?
• Are there any classes that I can take that will help me get down payment assistance or discounts on interest rates?
• How soon can you close my loan?
• Does this loan option include any restrictions?
• Will my loan require any special inspections or appraisals?
• Do you have to pull my credit or can you get me an approval of a recently pulled credit report that you pulled yourself?
• If I don't qualify for a Loan today what can I do to improve my situation so that I can approve for one in the near future?

Remember to invite your REALTOR® with you to your appointment with the loan officer. As a valued member of your team they will be in your corner asking all of the tough questions and making sure that you are getting the right answers. Often they will ask questions that you may not think to ask and can help guide you to find the best loan officer for you to work with.