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Financing & Mortgages: How to get the money you need:
You can't buy a home without money...And most buyers don't have enough of their own. So they need someone willing to lend what they need. This makes the lender an important participant to both the buyer & the seller in any real estate transaction.
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What the Pro says:
Buying or selling a home is fun. Shopping for a lender is NO fun! But the former can't happen without the latter.
Picking a good lender (there are no "best, but there are "worst") is important. If you haven't already found one, ask your Realtor or HomeFAQs for advice.
A good lender will have experience - believe me, lending is not a cut-&-dry process - as well as an arsenal of programs so you can find one that suits you.
As important, make sure the lender has the resources behind them: underwriters, processors, etc., so all the many tasks that need to be done will be done.
Finally, ask about costs, not just interest rates: thousands of $$$'s are at stake. |
HomeFAQs On Mortgages:
1. When should a buyer contact a lender??? As the first step after deciding to buy a home A good lender will set the parameters for everything else that follows.
2. What is "pre-qualified" and is it important? Pre-qualified, pre-approved and pre-committment are terms used by lenders that demonstrate the buyer has met , at the least, minimal requirements of a lender for a mortgage. And these letters are usually a requisite part of any offer made on a home: seller's expect them to be there. Get one!
3. I've heard phrases like "PMI" , "80/10/10" or "80/15/5": what do they mean? While lenders seldom require a buyer to put down 20% of the home's price, they still look for the buyer to make a substantial committment to the purchase price. Programs like the above are designed to allow more people to qualify for mortgages while insuring the lenders interests are protected.
4. Do costs vary from lender to lender? Yes, and from loan program to program. Asking about & comparing costs from several lenders should be an integral part of choosing a mortgage company.
5. What about 1st time buyer programs? Are they worth investigating? Such programs can offer a buyer some real benefits like lower interest rates, down-payment assistance and more. However, there are some additional costs and requirements for these programs. If you are a 1st time buyer, at least ask about these and if they might be of help to you.
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