It’s time to buy your first house, and you’ve never been more excited in all of your life. However, you’ve also never been more nervous – working with mortgage lenders in Cedar Rapids, Iowa has you scared silly, and you aren’t sure what you can do to calm yourself. Follow these simple steps below to talk to your lender reasonably and to walk away with a mortgage that you can afford.
If you want to impress mortgage lenders near you the first time you talk with them, you need to come prepared. Don’t just walk into the meeting without understanding anything about your financial history. You should have proof of income, a list of your debts and the payments you make, as well as an idea about your credit score. This step is typically a great idea because it helps to ease the lender’s mind and impresses them with your abilities.
Just as importantly, this information gives you an idea of what to expect when you ask for money from the lender. These details will dictate the amount of money you receive, your interest rates on your payments, and how long your payment cycle will last. Though you may not be able to estimate an exact amount based on these figures, you should get a pretty good idea of what to expect based on these items.
If you aren’t sure what else you need to bring to a meeting, contact your lender and ask them what they want you to bring. Most of the time, these experts will fully understand what they want from you and will give you a detailed listing. Don’t think that this makes you look silly or unprepared: your lender would rather you ask about what you need rather than have you come with nothing and force them to reschedule your meeting.
If you’re worried about having to spend too much money on your home, you may want to consider asking your lender about the possibility of either government loans or government assistance. Federal and state departments often provide a myriad of help to people looking for a home, particularly if they’re a first-time buyer. Though you may not qualify, it never hurts to ask for help to see if you can get the assistance that you need.
For example, you may be able to find assistance programs from state housing finance agencies that will help you with your down payments. This step is a great one if you’re having a hard time coming up with the money that you need for your first payment. Just as importantly, these agencies can also help you pay closing costs if you’re struggling to stay financially-solvent during this process.
You may also want to seek out loans from governmental offices such as the FHA, the USDA, and even the VA. These departments often offer high-quality loans at reasonable rates to those who qualify. For example, veterans should always start their application process with the VA. Through this department, you can often get the best loans for your needs without having to pay an excessive amount of money or time with your mortgage lenders.
As you start talking to mortgage lenders and other individuals about buying your first home, you need to make sure that you don’t just take the first quote that you can find. While you may be desperate to buy a new home, it is essential to take the time to do right by yourself and avoid diving headfirst into a potentially problematic situation that may end up costing you a lot of money. Instead, take the time to shop around a little and get multiple quotes.
As you ask for quotes, make sure that you pay attention to issues like origination fees, the annual percentage rate (APR), and any other element that may affect the quality of your loan. Don’t be afraid to let these individuals know that you are shopping around with different lenders. This step is a smart one because it will let them know that you’re getting different quotes – which may be lower – and can give them an insight into your buying process.
Just as importantly, they may be forced to cut you a better deal as a way of keeping your business. Rather than letting other individuals take over your loan, many lenders will reduce your interest rate a little and even offer coverage on items like closing costs and may even help a little with your down payment. However, pushing too hard may also backfire if the lender lets you walk away. A delicate balance is required to get the results that you deserve.
Lastly, when you’re talking to mortgage lenders for the first time, you need to see if they have the ability to get you pre-approved before you start shopping for loans and houses. These professionals are intelligent and understand not only how to examine your credit history and other elements of your financial situation, but can also work hard to ensure that you are matched with the best possible loan situation.
For example, they can decide if your credit is strong enough to get you pre-approval and then write you a letter stating that you are a safe person to whom a lender can give money. This letter is also designed to help you stay on budget and provide sellers with proof that you are serious about buying. Most sellers will want a pre-approval letter from their buyers to ensure that they aren’t selling to someone who may not be the right choice for their home.
More importantly, though, these letters also let any lender who may work with you know that you are a good borrower. Most lenders are wary of people who have never bought a home before and want to make sure that you are safe. Thankfully, a pre-approval letter shouldn’t be too hard to get as long as you don’t have any credit issues and if you take care of any debts that you may owe, either to student loans, car dealers, or credit card companies.
As you can see, working with the best mortgage lenders Cedar Rapids, Iowa has to offer isn’t hard as long as you are honest and know exactly what steps to take. So if you’re interested in a mortgage and want to work with experts that you can trust, please contact us at Hall Lending Group as soon as possible to learn more. Our experts are standing by to help you get the help that you need.