Mortgage Information Center:
Do You Know Your Home-Buying Budget?
The Process & Rules Have Changed
In October 2015, the process for getting and closing on a home mortgage changed, as a result of the Dodd-Frank Act passed by Congress. Most of the challenges of the new process impact mortgage lenders and closing attorneys. But, it also affects home buyers when it comes to the approval process and the timing of closings. It is more important than ever to talk to a Lender and get a full loan approval early in the process. It is also wise to work with a local, hands-on lender; rather than a Big Bank, or other large national lender, where you'll just be a "file in a pile." You want a Lender that really cares about your needs and can respond quickly to last-minute surprises.
Talk To a Lender Before You Start To See Homes:
- This is a strong housing market. Multiple, competing offers are not uncommon. You want all your ducks-in-a-row before looking at homes.
- It strengthens your offer to purchase. The home Seller can see where the funds are coming from and is more likely to accept your offer, if they see you are prepared.
- It prevents frustration. When you discuss all of your mortgage options with a good Lender, you will understand exactly how much house you can afford, as well as all of the the costs involved in purchasing. Avoid the stress and frustration of looking at homes before you truly understand where your comfort zone is. Avoid surprises.
- It speeds up the process. Time is critical if you love a home. While you are trying to get approved by a lender, someone else could submit a offer with an approval, and steal your favorite home from you.
- Lenders can often suggest simple things you can do to improve your credit score so that you qualify for lower interest rates.
- It is absolutely essential if you are even considering buying a foreclosure, short sale, or other type of distressed sale. Most of these will require that we submit your approval letter with the offer. The ability to close quickly can be almost as important to a seller as the price offered.
It is never too early to talk to a Lender about your plans and options.
If you are looking at higher-end homes, the sellers and their listing agent are likely to require an approval letter, or proof-of-funds (for cash sales), before a showing can even be scheduled.
Plan to officially select which Lender you are going to use on or before the day you make an accepted offer.
You can use any Lender licensed in North Carolina, and real estate agents are never compensated for recommending Lenders, but I do know which ones provide the best customer service and have the most stress-free, on-time closings.
For friendly, personal attention, I highly recommend the Lender below:
Recommended Lender:
BettyAnn McCloud
VP of Mortgage Lending, NMLS #82745
Gauranteed Rate, NMLS#2611
120-C South Village Lane, Suite C
Davidson NC 28036
Direct: 704-622-9878
bettyann.mccloud@rate.com
Click HERE to Apply Online!
She will gladly answer all your mortgage questions and explain all of your loan options: Conventional, FHA, VA, USDA, and all other funding choices.