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OBX Real Estate Guy

Your full-time, overtime, anytime OBX Realtor

By Hugh Scooter Willey | Broker in 27949

Figuring out which Loan is RIGHT for You!

Home loans got your head spinning? The level of lender scrutiny and the maze of loan programs have never been more complex and sometimes even illogical. There are loans for owner occupied and non-owner occupied buyers.  There are loans for buy, fix, and sell properties; there are loans for buy, fix, and hold properties, too.  There are FHA, VA, USDA, HomePath, FHA Construction, Regular Construction loans, a first and 2nd mortgage, FHA 203k, Fannie Mae, Freddie Mac, VA, conforming, high-balance conventional, jumbo, super jumbo, points and by-downs and the list goes on. . .With all these options for mortgages come a plethora of acronyms and jargon. Each choice representing its own set of trade-offs. How do you decide what is right for you?

With recent headlines about jumbo mortgage rates reaching unprecedented lows, you may think that a low interest rate is the key. But you should consider a combination of elements, in addition, to the interest rate. As the mortgager, you need to find out what kind of products a mortgage lender has, so that you know which kind of loan you are interested in obtaining. It all starts with educating yourself by talking to a mortgage lender. To make the right choice, start by understanding your objectives, what types of mortgage you qualify for, and the benefits and limitations of each option when it comes to a home loan. Some of the terms to look into are the loan to value (LTV), the interest rate, and the length of the loan.

You can learn a lot on the internet, but ultimately, a conversation with a professional mortgage broker lets you compare products tailored to your situation. You should expect a rigorous set of questions because that will lead to a better fit. Find a person who is asking you a lot of questions about what your situation is to find out the best choice for you, rather than just quoting you a rate. Yes, it can be frustrating at first when somebody is asking a lot of questions. That tells you you’re dealing with a professional. You wouldn’t want to go to a doctor who didn’t examine you, and just said, ‘How do you feel?’ and wrote you a scrip.

Usually, the best recommendations for a mortgage lender will come from someone who has successfully obtained a mortgage. As your realtor, I can provide you with recommendations of mortgage lenders with whom I have had successful and smooth closings from my previous clients.

Once you decide upon a mortgage lender, you will need to gather all the pertinent financial information. You can actually start pulling this together before you're ready to go through the pre-approval process. It is very important to get pre-approved before you start to view houses  because “good” homes “priced according to the current market” are selling and they are going under contract quickly, sometimes with multiple offers.  By getting this information before you begin the search for your new home, you accomplish two things. One, you give yourself and realtor a budget to work with. Two, you strengthen your position with the seller. They know that if they accept your offer you have the potential to pay for it.

Obtaining financing is the most nerve racking part of looking for a house. If you do it from the beginning, then the rest is smooth sailing from there. 

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hughwilley@sunrealtync.com or 252-489-8491
Hugh “Scooter” Willey
www.nagsheadhomes.com
www.hughwilley.obxwhere.com
www.outerbankshomes4sale.com
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