2 keys for a successful mortgage: trust the people and the process
There comes a time in the home buying process that you must have a little faith and put your trust in others to have your back. There could be reams of paperwork to wade through and understanding it all can be a little daunting. But that’s why you work with mortgage professionals who can walk you through some of those unknowns.
Know your variable closing costs
One of those unknowns that mortgage pros can help explain sometimes shows up in your closing costs. But you don’t have to worry because mortgage regulations require lenders disclose estimates of these costs upfront as accurately as is reasonably possible.
But even though some costs are disclosed upfront, they can and do change. Here’s a quick rundown of what can and can’t change:
Can’t – Costs tied to program lender and rate
Can – 3rd party fees charged by the lender could change by ~10%
Can - 3rd party fees based on which provider you choose & taxes and insurance
Which loan can you trust?
Another confusing part of the process can be figuring out which loan is best for your situation and understanding the costs. Two main factors that make up the costs are the rates and lender fees. But can you believe these rates if different lenders advertise different rates?
One may have lower rates while the other may have lower fees. And while both may come highly recommended, you may not be sure how to select the right one for you.
But why would they be so different?
Well, it’s not like there’s one rate. Beyond factors that impact rates like your credit score and loan type, there’s the lender margin, which is how much lenders make on a particular loan.
There are many factors that impact the profit margin like operational costs. Some of those costs can include things like expensive commercial buildings, expensive prime time TV ads, lots of managers with big salaries, and more. It all adds up. And it all can cost you.
Build a team you trust
You know that feeling of you don’t know what you don’t know? Kinda like what it could feel like the whole time you’re buying a home.
Besides anyone you are buying the home with, there are two people who are as big a part of any home purchase as anyone else – your lender and your real estate agent.
But how do you know they are teammates you can trust? Start with a few basic questions.
Ask your Lender:
When will you be available for questions or info needed for closing?
What is your experience with my particular situation and how should we expect to communicate and share documents?
What are your rates and fees and will you help me understand them so I can make apples-to-apples comparisons?
Ask your Realtor:
What areas or types of homes do you specialize in?
What will the research and selection process look like?
What specific things should I know about the market?
As for choosing a lender, communication is the key. You should be comfortable that they are experienced and can help you no matter your needs. As your Mortgage Mentor, I’m licensed in dozens of states and helped thousands of homebuyers.
My team and I are available to help. Just reach out to us to start the process.