Rich Rosa, co-founder and co-owner of Buyers Brokers Only, LLC
asks “Is a Lack of Understanding About Mortgages Holding Back Home Buyers?”
Possibly….this is one of
the reasons I wrote my book. The mortgage process is confusing to say the least
and whether you’ve never applied for a mortgage before or have multiple
mortgages, the more you know about the process, the better. I believe that an
educated consumer is our best client. An educated consumer asks better quality
questions and is more comfortable discussing and exploring their loan options.
Most
people don’t know how much home purchasing power they have, how much to expect
for closing costs (varies by state), or how much paperwork is involved when
applying for a home loan. Most people have no idea the difference between loan
programs from bank to bank, lender to lender, or broker to broker— or what the
differences are between the main types of residential mortgage providers. Most
people have no criteria for choosing a lender, the type of loan to seek, or how
much down payment is best for them. For example, are their differences between
the types of property that may affect down payment?
The
mortgage industry is packed with nuance, which can lead to confusion for the
consumer. While trying to buy a home, you may have people from many different
professions telling you what you should do and how to make decisions—who should
you listen to in which situations? Your most personal financial information is
critical to the mortgage process and yet do you know who you are sending it to?
What about mortgage insurance? Why is it required and when?
The
two questions I most often hear are: “What’s the payment?” and, “What’s the
interest rate?” While these questions are important, there are several other
questions that are just as critical: what is the right loan type for me; is
there an up-front funding fee for this loan; what are the differences in
available mortgage insurance; how will property type restrictions affect my
loan; what are the pros and cons of this loan; what is the down payment
requirement with this loan choice over another; what are the closing costs
associated with each loan type; and, who is allowed to pay the closing costs?
Successfully navigating the maze of questions, regulations, and requirements
ultimately leads to a mortgage closing.
Email me at info@bestmortgagebook.com for my Free Checklist “Questions to Ask When Selecting a Lender”.
For more
information on loan documents, read my #1 Best Selling Book on Amazon
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