Have you noticed? Whatever you decide to do, whether it’s to get married, have a child, buy a car, take a new job, or buy a home, you’ll get plenty of unsolicited advice.
If buying a new home in BelAir Real Estate is in your plans, you’ll no doubt be getting plenty of advice about choosing a lender and getting a mortgage. Here is some that you should disregard:
Use the bank that has your checking and savings accounts. Sure, they might give you good service and a good rate and terms, but again, they might not. Before you make a decision, check with a few of our BelAir real estate mortgage brokers.
But if you want more advice on how to sell your home for top dollar, make sure to get a free copy of my Book“The Secret of the Wealthy Home Sellers”.
Mortgage brokers have the ability to place your loan with a variety of banks and can help you choose the best loan program for your specific situation. Your local bank has only its own programs.
Always go with the lowest interest rate. The lowest interest rates generally come with adjustable rate mortgages. That could be bad or good for you, so talk it over with your lender, compare the long term consequences, and consider your future plans. It will probably be worth paying an extra percentage in order to be locked into a rate that can’t change over time.
BelAir Real Estate will have the Home Mortgage your seeking.
Wait until you’ve found your new house from BelAir Real Estate before you talk with a lender. This one how it’s probably the worst advice of all, for a couple of reasons.
- Unless you get pre-approved, you won’t ever know how much you they are capable of lending you. It’s heartbreaking to fall in love with a house only to learn that it is out of your reach.
- Having a pre-approval letter in hand puts your offer at the top of the pile when a seller is confronted with multiple offers. Naturally they’d rather deal with someone who is almost assured of getting a loan, rather than someone who has yet to speak with a lender.
**Note that there is a huge difference between being “pre-qualifed” and “pre-approved.” Pre-qualification carries no weight at all, because the lender has not checked your credit nor verified your income and obligations.
Buy the most expensive house you can afford. No, no, no. Buy a house that suits your lifestyle and allows room in your budget for other things that are important to you. When the lender tells you your limit, he or she has no idea whether you love 4-star dining, week-end trips to the mountains or the beach, or vacations abroad. Never spend so much on a house that it becomes a burden.
You don’t need to take time to read the fine print. Yes, you do! That fine print could contain information that will cost you thousands of dollars. Read every word before you sign, even if it means going early to the closing or making people wait. The best plan is to get a copy a day or two in advance so you can read at your leisure and have changes made if necessary.
Are you ready? I’ll be happy to give you the names of mortgage brokers who have served my Bel Air Real Estate clients well.
If you are not sure what the real value of your home is, it’s best to get a free home value audit. You will find out what your home’s strong points are, as well as its weaknesses.