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Knowing what you can afford, priceless... One of the most important steps to take in the home buying process is to know what you can afford and stick to that amount. It is very easy while out looking at properties to get swayed by what you see and talk yourself into buying more than you really can afford. One of the biggest problems today in the housing market is that buyers have allowed themselves to reach for the stars and buy more than they could afford. With interest rates increasing and adjustable rate mortgages increasing suddenly they are finding their monthly payment increase to amounts that they can't afford. How does one not fall into this trap. Buy only within the price range that you are comfortable in and lock in a 30 year fixed mortgage regardless of what you are planning to do in a few years. Yes, this sounds conservative but in today's market you very well should be. If you like to live dangerously and don't mind taking risks then go for it. We just want you to be aware of the pitfalls of risk before taking them. How does one get pre-qualified for a loan. There are several ways to do this, some choose to go on line and fill in forms to get instant results, others choose to call a mortgage lender at a bank or brokerage firm, and some choose to wing it because they know the system. We recommend talking to someone face to face or on the phone. If you choose to call someone make sure that this person comes highly recommended before giving out any personal information. If you have a good relationship with your bank they often have loan officers available to discuss your lending needs and they too can pre-qualify you. One thing we do recommend is that you shop for the best price and rates. Make note that you are comparing apples and apples not apples to oranges. What do I mean? Well, some loan officers will tell you that they are giving you this great rate but nailing you on higher fees and others will have a higher rate and lower fees. Try to get everyone on the same page, give them the same information, and ask for their estimated closing costs for their loan package and compare. Besides the interest rates and fees make sure you are comfortable with the loan officer. Note if they return calls and emails within a timely fashion. Is this person someone you feel will work hard to make sure your loan is approved and funded so you can close on schedule. The last item we feel is extremely important is will this loan officer be a team player throughout the transaction. Everyone needs to work together to successfully get you what you want. |
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Send mail to
Gayle@GreatHawaiianHomes.com with
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