Congratulations on your decision to buy a new home, but do you know the home purchase basics?
By: Hitesh Khan/
There are many important things to consider throughout the home purchase basics, especially if you’re a first-time homebuyer. Here’s some information that will keep you on track.
In General The Home Purchase Basics Would Mean…
A home purchase may be your largest financial transaction to date, so it’s important to make the right decisions and to keep an eye on the details. With the assistance of your Real Estate Agent and Loan Officer, it should be an efficient, pleasant, and ultimately rewarding experience.
Count On Your Real Estate Agent To:
- Preview available homes to weed out those that are overpriced, or undesirable in some other way.
- Present the homes that suit your needs as you’ve defined them.
- Help you determine the difference between a “good buy” and a property which, because of its nature (neighborhood, market appeal, etc.), might have to be discounted if you decide to sell in the future.
- Negotiate the best deal for you. With a Pre-Qualification letter from a lender in hand, your Real Estate Agent will be able to demonstrate that you are a qualified and capable borrower. This will strongly influence the Seller, and may make the difference between the Seller accepting your offer or someone else’s – even if your offer is lower.
Count On Your Mortgage Broker and Loan Officer To:
- Assist you in selecting the best loan to meet your personal situation and goals. (This single decision can save you thousands of dollars throughout the years!)
- Keep you informed of your loan status throughout the entire process.
- Keep your Real Estate Agent informed of our loan progress (Note: your personal information is always kept confidential between you and the lender; only deal points and progress are shared).
- Get the appropriate loan for you at the best rates and fees. This will save you significant money “up front” and throughout the years to come.
Count On Yourself To:
- Keep your Real Estate Agent informed of any questions or concerns as they develop.
- Keep the process moving by providing documentation and decisions as soon as reasonably possible. By doing so, many of the details are taken care of early in the process so you can comfortably concentrate on any last-minute details or events that require your attention.
- Enjoy purchasing your home, but do remain objective throughout — to make the business decisions that are best for you.
Home purchase basics would require you to make sure you are pre-approved as early as possible. This will put the power of financing behind you so you can concentrate on selecting your home.
Independent mortgage brokers have had a significant positive impact on the lending industry and they should be part of your home purchase basics. Today, the use of a professional mortgage broker is one of the key strategies used by sophisticated borrowers.
What is a Mortgage Broker?
A mortgage broker is an independent real-estate financing professional who specialises in the origination of residential mortgage loans. Mortgage brokers normally pass the actual funding and servicing of loans on to wholesale lending sources. A mortgage broker is also an independent contractor working with (on average) as many as 30 lenders at any one time. By combining professional expertise with direct access to hundreds of loan products, your broker provides the most efficient way to obtain financing tailored to your specific financial goals.
What Do Mortgage Brokers Do?
In the volatile home-lending market, mortgage brokers can serve as safeguards, offering their clients security, safety, and peace of mind. One of the broker’s most important functions is escorting your loan application through the entire process, constantly patrolling the component transactions for possible breakdowns. A professional mortgage broker can wade through the mountains of rate data and program options, researching current market conditions to find the most accurate and up-to-date information about cost-effective loan options.
Brokers Handle the Details!
There are literally thousands of variables that can affect the outcome of your mortgage transaction. That’s why as part of your home purchase basics, you need a mortgage broker to act as a liaison between the real estate agent, lender, appraiser, credit agency, the underwriters, the processors, lawyers, and any other services which may affect your transaction.
A mortgage broker also:
- Discusses and explains financing program options
- Informs you, in writing, of lock-in options
- Explains all documents of the loan application
- Explains all associated costs of the loan application
- Explains the disbursement of all loan applications
- Explains the loan process, from application to closing
- Provides you with a good faith estimate of cost and fees
- Communicates with you throughout the loan process in a timely manner
- Coordinates the final closing of your transaction
For first home buyers in particular, the quickest way to understand the lending and property market conditions and the best loan for you is through talking to a mortgage broker. A mortgage broker has access to a large range of financial institutions and hundreds of financial products to suit your needs.
A mortgage broker provides you with options. Instead of you doing the leg work and chasing ten different banks for their best rate, a mortgage broker will do all the hard work for you and provide you with the service a bank cannot. Your mortgage broker will provide you with an efficient and cost-effective method when looking at your home loan options.