Tips for How to Get a New Home Mortgage
Understanding home mortgages and equity loans can be difficult. But Parade of Homes has the answers and resources below to help you with all of your new housing financing questions.
- Here's a great new article from US News covering basic terms a first-time buyer needs to know.
- A variety of resources about Mortgages for Home Buyers and Homeowners from the US Government: View Now
- Resources from Freddie Mac: View Now
- Loan Shopping Worksheet from the US Government.
- Resources from the Federal Trade Commission: View Now
- Resources from the US Department of Housing and Urban Development: View Now
- Resources from www.thetruthaboutmortgage.com website: View Now
- Mortgage Calculators from Wells Fargo.
Home Mortgage Financing is Available and Still at Great Rates in the Twin Cities and Minnesota
While home mortgage rates have moved up and down incrementally during the past several years, they're still well below the average interest rates of the past, and about a quarter of what they were during the peak in the 1980s.
But, can you get mortgage financing? The answer is yes. Fixed-rate (30-year, 15-year, etc.), ARMs (Adjustable Rate Mortgages), jumbo loans, even down payment assistance programs are available for qualified buyers. Lenders have returned to the more traditional methods of qualifying buyers (you won’t be able to get a loan just on your good looks any longer), but with a little effort, you’ll be assured you can meet your mortgage obligations.
Find a Mortgage Lender First
Don’t wait until you have found the perfect home, talk to a lender first. You’ll be able to get a clear understanding of the loan options available, and even more importantly, know how much home you can afford.
“It pays to shop around, but ultimately, it’s up to you to do your due diligence to determine the lender that best meets your financial needs. Beginning the process early gives you time to uncover and address any qualifying issues before your closing occurs,” explains David Welsch, Business Manager at Supreme Lending. “Credit, employment concerns, income qualification, and underwriting guidelines can present challenges to closing your loan. The new TRID regulations imposed as a result of the Dodd-Frank Act also add new timelines to the process which can add additional challenges to a successful closing.”
And before you choose your lender, make sure to ask for a Lending Estimate, which itemizes all charges and costs associated with your loan. This document lets you compare lenders’ costs quickly and easily.
Once you have decided which lender and loan program is best for you, seek mortgage approval. “This means that the entire loan file has been reviewed, subject to closing conditions,” Welsch says. “There’s a big difference between being pre-qualified and having a fully-underwritten loan approval.
“A mortgage approval letter assures you and a potential seller that a mortgage lender will lend you a certain amount of money to buy a home, subject to a property appraisal and other stated conditions. You'll be able to purchase a home with the security of knowing exactly how much you can borrow, and it shows a builder that you have the financing you need to buy the home.”
Welsch provided several additional recommendations for buyers:
- Live within your comfort level. You don’t have to go for the biggest loan amount you are approved for.
- Read and understand your mortgage documents. If anything is unclear, ask your lender for clarification.
- Be prepared for closing and work with your lender. Provide requested documentation in a timely manner and stay in touch with your lender before closing.
- Never feel pressured into signing any document you don’t understand or feel uncomfortable about.
Your new home is probably the biggest purchase you’ll ever make. It will provide comfort and shelter, and become the backdrop for precious memories for you and your family. So make sure you take the time to ensure you’ve selected the right financing and the right lender for you. For a list of professional lenders just click on the Products/Services search button on our home page and choose “mortgages.”