Home shopping is always exciting. However, doing some research and finding a loan which suits you the most can make things a lot easier in the future.
Useful Real Estate Finance Tips:
~Not many people who are in search of a house or apartment, are pre-approved for a loan. In fact, being pre-approved can be very helpful in terms of negotiating a future home. Spending money is not needed for this. One of the visible advantages of being pre-approved is that it makes the seller to consider you as a genuine buyer.
~Being pre-approved is different from pre-qualification. The latter only gives an idea of the costs and your affordability. The former needs you to have all the qualifying paperwork done at the front end of the process.
Related Resources: Freddie Mac | VA Loans | Washington Finance
~Flexible underwriting guidelines can be helpful in overcoming the difficulty of immediately getting a job for both husband and wife in the place they intend to relocate. The underwriter can use his or her past employment history, if he/she can produce two years of past employment history, in consideration for the sum you would qualify for. This allows your spouse to find a suitable job unhurriedly and you to purchase the home you really want to.
~You can take the advantage of rate-lock options available as well. The time between when you agree on a mortgage rate and when you go for settlement is known as lock time. The shorter this period the lower the interest rate will be.
~You are bound to pay extra fees such as underwriting fees, processing fees, or commitment fees when you purchase a home. However, you can talk with your lender about these Negotiable Lender Fees and probably remove them or negotiate their costs down.
~Some lenders offer very quick loan processing, which could prove providential if time is of the essence. Especially if you have already sold your house and the new home will take some time to be ready. Speed loans can eliminate the necessity of a temporary house.
~An Adjustable Rate Mortgage (ARM) can ensure lower monthly payments.
~Paying some of the interest up front would get you a lower-interest fixed-rate mortgage.
~Try to keep your credit orderly. Always a huge plus, as good credit allows you to negotiate for better rates, inspection fees, and commissions.
Selecting a Real Estate Agent Who Understands Real Estate Finance
You can direct the following questions to an agent to make sure that he/she is able to meet your requirements:
1. Can you help me to get an easy and free pre-approval?
2. Can you get me preferred access to the lowest possible down payments, interest rates, and EMIs?
3. I prefer to get advance notice of listings that match my criteria. Would this be possible?
With a home loan comes considerable financial obligations. It is always advisable to be prepared and consider all the aspects of a loan before you make any commitment.