The right or wrong decision when signing your home
mortgage can mean thousands of dollars difference in interest paid.
There are very important considerations to evaluate before
you commit to a 15 or 30 year note.
For many of us our mortgage payment is the most
important financial decision weâ€™ll ever make. Doesnâ€™t it
make sense to know as much as possible about the financing of
our home? Take the time to thoroughly investigate all of your
options!Unbelievably, many of us sign the first mortgage placed in
front of us. Typically the excitement of the new home
purchase reduces the mortgage to not much more than an
afterthought. What you read here could save you hundreds
or even thousands of dollars.
Your real estate professional has established
relationships with the top lenders in your area. By
aligning yourself with a professional agent you ensure
that all the financial steps are taken care of properly
and economically. Utilize a Lender With Established Ties to an Agent â€“
Lenders are much more flexible with the real estate
agents who have done business with them previously. This
relationship then establishes them as a team. The lender
and agent work effectively together, referring each
Thatâ€™s why a good agent can make substantial
difference in setting up the most economical financing.
And the right financing can, literally, save you tens of thousands
of dollars over the life of your loan!Donâ€™t Attempt Paperwork
Alone â€“ All the paperwork required to complete the
purchase of a home can be quite intimidating and
frustrating for a home buyer. Make sure you have your
lenders help you with all the paperwork. Get help from your
team, your lender and agent. Their expertise will help alleviate
the stress and it will prove to be invaluable before you
sign your mortgage.
Look at All Your Options - Make sure you see
at least 5 loan programs for your mortgage. Lenders have at
least 10 programs and should work with you and your
agent on deciding what is best for your circumstances.
Evaluate all your options. After all itâ€™s your money
youâ€™re spending â€“ not theirs!
Demand Service - There is little difference between
a bank, savings and loan, or a mortgage broker when it
comes to the competitiveness of their loan rates. The
difference is in the service they provide. It is their
job to serve you! You want to get the loan approved and
move into your new home as quickly as possible, but
donâ€™t overlook the fact that you are the one spending
the money and they are the ones who should cater to your
needs. Donâ€™t let the process become so intimidating that you
lose that understanding.
Stay in Complete Touch â€“ You should receive a
written report from your lender about every step. This will
ensure that no details are overlooked and there will be
Negotiate a Flexible Loan - Donâ€™t just
accept the terms they lay down in front of you. Lenders are in the
business of loaning money and they want your business.
Make sure you examine every option available to you. If
you negotiate a variable rate loan, many lenders have
the ability to move you into a fixed loan if rates start
going up. Make sure that you understand whether or not
that is an option in the package you are looking at.
Donâ€™t Give Up on the First No - Initial
decisions are not always final decisions. Going to a higher
authority can sometimes get you the loan, but do so with
the assistance and compliance of your lender and agent.
Many times special circumstances when explained
properly to the person in charge, will win you the loan.
Donâ€™t Wait for the Bottom of the Market - The odds
of you hitting the bottom of your market are about like
the odds of you hitting your state lotto! You will almost never
hit the bottom of a market. And trying to time it exactly right
is often costly. It usually causes a person or family
to miss out on the opportunity to purchase a very nice
property. Youâ€™re better off simply negotiating the best
rate and terms you can at the time you find a property.
If interest rates go down, you can refinance. This is a
much better approach because you wonâ€™t miss out on the
property youâ€™ve spent so much time locating.
Be Honest With Your Lender - Your lender wants
to help you with your loan. The only time they get paid is
when you get approved. The more information (good or
bad) you provide your lender, the easier it will be for
them to get an approval. It helps them present the loan
in the best light. This in turn helps the loan get the
highest approval rating.
Become Completely Educated â€“ Pick your lenderâ€™s
brain. Lenders will teach you all about your various
options, even if you havenâ€™t found the right property
yet. They will be very patient with you while you are
looking, especially if you have aligned yourself with
the right agent. They understand all the up-front work
will pay off in future business. Your agent will then continue
to refer people to the courteous and service-minded lender on
down the line.
Get Prequalified - Lenders will provide you with
a certificate of pre-qualification. By getting prequalified
you know exactly what financial parameters to stay
within. Your agent and lender will consult with you and
help you get qualified for the loan that best fits your
needs. Many times they are able to get you a larger loan
than you may have thought possible.
Valerie Fitzgerald specializes in luxury residential
real estate in Beverly Hills, Bel Air, Brentwood, Santa Monica and
Malibu. Valerie has more than 20 years of real estate experience and is
known for her solid reputation in the West Los Angeles brokerage
community. Sheâ€™s also the author of the book published by Simon and
and Sold: How to Survive and Build a Recession-Proof Business.
Search Luxury Homes in Los Angeles at Valerie
Fitzgerald Real Estate Listings or contact Valerie Fitzgerald at