Owning a home will be one of the most expensive ventures in your lifetime. Unless you have a rich friend or family member that is willing to foot the bill, then chances are you are going to need to finance it.
Whether you are looking into purchasing off the market or want to build your own house, the steps to finding the perfect mortgage for you and your situation is going to be the same. The key to a smooth transaction is assembling the right team of experts to help you get to the closing table. Real estate agents and lenders have access to different products and programs, through grants or partnerships with custom home builders, that might sweeten the deal additionally for you.
Enchanted Construction Service, Greenville custom home builders, provide homes in various budgets in different communities in Greenville area. Whether you started your internet search with “home builders near me”, “home builders in Greenville SC”, “new homes near me”, or “new construction homes near me”, these home builders know what it takes to get you into the perfect home.
7 Steps to Finding the Perfect Home Loan
You should never go into a financial decision blindly with your fingers crossed just hoping that you qualify. You should have a fairly good idea of what your credit profile looks like before you ever start talking to lenders.
There are various resources that will allow you to monitor your credit usage and your score available online and through applications. You will want to note what your payments are, how much you owe, any collections reporting, and any disputes that are still showing up on your report. These items may come up when you are speaking to a lender, and you don’t want to be caught off guard.
It does not matter if you are purchasing a home or refinancing one, lenders will often ask to see your reserve assets.
When you are purchasing a home, it is easy to understand that you will need money for down payment, closing costs, inspections, and appraisals, but will you need all of that for a refinance? The short answer is not necessarily, but in some cases the pricing on your loan can move in your favor if the lender is able to see that you have additional liquid assets.
Make sure that the money that you are claiming is sitting in a bank or investment account somewhere. Real estate is the easiest place to hide money, so government guidelines require that there is a paper trail on all funds used in a real estate transaction.
3. Working With a Lender
You want to shop for a loan officer and not so much the lender. People do not choose their lender by watching a Super Bowl commercial. They choose someone who answers their questions, walks them through the process, and explains their options.
Having the right loan officer working with you is crucial. Mortgages are like making a sandwich. There are a million different variations to the perfect sandwich. Make sure that you are working with someone that is knowledgeable and makes you feel comfortable to make a smart, financial decision.
4. Gather Documents
For your loan officer to provide you with accurate loan options, they have to be able to see the entire financial picture. They will ask you a series of questions, and they will ask you for a list of documents that they would like to review. Do the best that you can to get them what they need. If you don’t understand something that is being asked of you, ask for clarity. There is a reason that they are asking you for them.
5. Let Them Pull Your Credit
This might seem like an obvious step, but some people will ask if it is necessary. Yes, the lender needs to be able to evaluate your ability to repay the loan. If you were lending someone money out of your own bank account, wouldn’t you want to know that you were going to get your money back?
6. Discuss What the Loan Can Do For You
Before you ever start discussing rate, you want to understand if the loan is meeting your financial goals. There are certain features of the loan that can be customized and tailored to your needs to make them a better fit.
Your loan officer could find a 2% loan on a 10-year note, but is that payment in your budget? You have found a good rate, but it might be strapping the budget. This would not help you meet any of your financial goals. Understanding this first can help you find a much better loan structure that works for you.
7. Ask For Prepaid Interest Options
You will want to have a longer discussion about this with your loan officer, but points, which are prepaid interest on your loan, are not the bad guy. Prepaid interest can get you a lower interest rate on the life of your loan.
You will want to make sure that you do not over invest. Typically, you will want to see a return of investment in the first 24 months. Your loan officer should be able to explain your options.
There is so much to consider when you are looking into home buying. Custom home builders will typically have a partnership with a lender that can explain the expectations of the process for you along with the cost to build a house. New home construction allows you to upgrade finishes and select a layout that is more fitting for your needs that fit into your loan. Working with the right custom house builders can make the decision process so much easier.
Tour the floor plans that has to offer online or call them at 864-895-0601 to schedule an appointment. Their experts and custom home builders are on hand to help make your home buying dreams come true.