The Mortgage Process
It's a good idea to get pre-approved for a mortgage before you start shopping for properties to buy, unless you intend to pay cash for a home. You must go through the mortgage pre-approval process in order to submit an offer on a house since you will require a pre-approval letter from a lender.
1. How much down payment is required for a property and how do different down payments affect your interest rate and any required private mortgage insurance (Mortgage Insurance.)
2. What would the projected monthly payments for properties with various prices look like?
3. What impact do various down payments for a given price point have on your monthly payment?
Answering these questions helps you determine your price range and gets us off to a great start on your search.
Please let us know if you'd like a recommendation for an excellent lender!
We advise the following when seeking for a lender:
The majority of the business that local mortgage bankers receive comes from referrals, so they must maintain a good local reputation. A local loan originator (LO), as opposed to one in Hoboken, NJ, will be much more driven to close your loan quickly and without too much hassle.
Most of these LO positions are 100% commission-based. They have a strong incentive to approve you and ensure that your loan closes on time.
If your lender has a good reputation on sites like Yelp, Google+, or AngiesList, the lender will want to preserve that reputation (and hopefully get a new, positive review from you.)
Like Wells Fargo, Bank of America, Chase, etc. You might already bank with a major bank, in which case applying for a mortgage there may seem logical. According to our experience, their mortgage departments are frequently filled with lower-paid workers who aren't highly incentivized, which means they have less incentive to perform well for you.
