subject: Real Estate Loans: Selecting Great Loan Agents [print this page] If you are looking to get approved for a mortgage it is absolutely critical that you have either a broker or loan officer to speak for you, especially with the current state of the market. You want someone who is going to work with you and not try to sell you something that isn't feasible for your circumstances.
1. Utilize anyone that any friends and family members have used before with success. These experiences can help you choose someone to work with as long as the person who referred you to them was not fooled or overcharged during their process.
2. Know what products the agent is offering to you. Mortgages are very complicated and have a lot of different parts and terminology you may not always understand immediately. Don't be sucked into something you don't know. With adjustable rate mortgages especially, it is important that your broker explains how the interest rate will affect you personally.
3. It can be a very emotional time buying a home. Don't let your emotions get the best of you when you're buying by settling for any offer that is put on the table for you. You may be given an offer that you cannot afford and know this but let yourself get carried away by wanting your own home so much.
4. Don't use any lenders who are running commercials constantly about how you should refinance due to low interest rates.
5. Don't fall for a bait and switch with the lender. This is typically done by offering a very low interest rate at the beginning of the process and then later on it spikes up much higher by giving a crazy excuse such as the lock you had previously expiring or a hit to your credit score.
6. Prepayment Penalties - Always be aware of any penalties that you will experience if you sell your house or reduce your loan amount. Know what the differences are between a soft prepayment or hard prepayment.
7. Shop around. Look at the programs that you may be eligible for along with the different incentives that borrowers may offer to you. Programs vary and some exist based on your income or even if you're a first time home buyer. Veterans are also able to qualify for special programs for mortgages. If your loan officer doesn't offer these programs maybe it is time for you to find a different officer to help you in the process.
8. Know how your financial situation stands. If you have any blemishes in your report be open with your officer about what is included in your report. It will all come out eventually and the lender may be able to help you find a program that caters to individuals just like yourself. This will eliminate any problems that you may have later on down the line in the process.
9. Be prepared. Have all your documents in hand when you apply for your loan. Bring the past two years of tax returns and your proof of income as well. Your loan officer needs these numbers in order to help you get the best deal for your individual circumstances.
10. It is not an easy process to obtain a mortgage. There are a variety of different rules and regulations listed with the banks that may not always make sense to average individuals not trained in the field. Not all loan officers and agents have the attributes of being honest or preserving their integrity. You need to find a loan officer who will put these values above others to do their job effectively.
It is a long process but well worth it in the end.
