Getting Financed - Buyers Services

What came first, the chicken or the egg?

     When it comes to financing, every Real Estate Agent, and Mortgage Loan officer will tell you that it is better to get financed before you start looking at homes.  However, many buyers still insist on doing it the old fashioned way and will look for homes, find the home they want, and then try to qualify for it. 

How can I have the same power as a cash buyer?

      Cash buyers are the perfect buyer for most home sellers.  The sales process is cut and dry, there are not applications to fill out, and no waiting to hear from banks and other lenders. If a seller gets multiple offers on their home, and one of them is cash, most of the time, they will go with the cash offer. 

      As a home buyer, you owe it to yourself to put yourself into the same position as a cash buyer.  Obviously it is pretty difficult to come up with large amounts of cash.  The solution to this, is to do exactly what all Real Estate agents and Mortgage Loan officers have been advising for years, get pre-approved.  When you make an offer on a home, and you have a letter from your loan officer committing to a loan for you, then you are put on the same level as a cash buyer.  This is because the seller knows they don't have to wait for applications to be filed, and then wait for results.  It also tells the seller that you are responsible enough to take the proper precautions for the purchase of your home, and therefore are committed to buying their home.

But I know my credit is okay, and I know I can get financed...

     Be cautious with this statement.  Many years ago, people were 100% sure that computers were going to get bigger and bigger until they took up entire rooms and that there would be no practical use.  However, years later, they were proven to be wrong, as computers come in many small formats, and are used every single day. 

     The truth is, unless you reviewed your credit within the last 24 hours, then you could have issues.  Imagine going to find that perfect house, then you go to get qualified.  A creditor made a mistake and did not report an account that you paid off and closed 5 years ago (it does happen).  It will take you approximately 30 days to get the proper documentation to fix the problem.  In the meantime, the home you wanted to buy, has been sold to someone else.  The key is to always be prepared.

Why does my interest rate effect my price?

     Many people do not realize that the interest rate of their mortgage loan, will affect the purchase price of the home they can afford.  This is because your loan amount is based upon the monthly payment you can afford.  In a Mortgage Loan, the monthly payments are mostly interest for the first half of the loan.  This means that if you have a lower interest, then you are paying less interest in your payment, which means you can afford more of a home. 

     Here is an example.  John can afford $1,200 a month for payments.  At an interest rate of 5.85%, he can afford a home with the purchase price of $203,000.  The same monthly payment on a loan with $6.85% means he can afford a home with the purchase price of $182,000.

How do I secure the best interest rate?

     Only your loan officer can truly tell you what interest rate you can get.  The truth is there are hundreds of loan programs available.  Many of these programs have their own interest rates that can change dramatically from one loan program to the next. 

     The best solution is to find a mortgage loan brokerage that can search every program to insure you the best interest rate, and therefore the highest possible purchase price.

The best benefits of getting pre-approved for your loan...

     The biggest benefit outside of having the same negotiating power as a cash buyer, is that you will only look at the right homes.  Imagine spending days looking for a new home.  All of a sudden, you find your dream home, the perfect home for you and your family.  You fill out your loan application only to find out that you don't qualify for that purchase price.  This can be a devastating set back when trying to find a home.  The mental pedestal that you put yourself on when you get pre-approved is very comforting.  You don't have to worry while waiting to find out if you qualify, and your transaction will close more quickly.

How do I find the right Mortgage Loan Brokerage for me?

     To truly help you find the right loan program, you need a mortgage loan brokerage that can search any of the existing loan programs to find the right program for you.  Many large credit unions, banks, and corporate loan companies, keep a limited supply of in house loan programs that they try and force you into.  Mortgage Brokers can look at any loan program, to find the right fit for you.

      One of the top producing Mortgage Brokerages in our market for finding the perfect program for their clients is Miller Mortgage Services.  Miller Mortgage has found loans for hundreds of applicants over the years, that banks, and other loan companies said were not possible.  Don't waste your time at a bank, credit union, or large corporate lending institution.  Any program they offer, can be found by Mortgage Brokers, and among the mortgage brokers, Miller Mortgage is the best.

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