May 14th 2019

10 Tips For Successfully Securing Your Mortgage

For many people, purchasing a home means taking out a mortgage. There are tons of loan options out there, that may seem overwhelming and complex, but it’s important to understand what your options are, as well as how to move forward. Having a great loan officer on your side is just as important as choosing the right loan. Home loans are complex and it’s smart to have professional help to get you through any obstacles you may stumble upon! Banks can move fast and will ask lots of questions during the loan review process. You’ll be thankful to have a good loan officer on hand to consult. Here’s a few other tips to keep in mind:

1. Credit is king! Make sure you’re monitoring your credit score leading up to the mortgage application. You’ll want to make sure that all of the major credit reports are accurate, and that there are no red flags.

2. Once you have your credit report in hand, get things in order right away. Dispute any inaccuracies with the major credit bureaus so they don’t impact your buying power.

3. Make sure your credit is established enough. Most lenders will require at least three “tradelines” (any open credit lines like credit cards, student loands, car loans, etc). Leave older credit lines open and DO NOT OPEN ANY NEW LINES OF CREDIT!

4. Do your homework and find the right loan officer to work with. An experienced mortgage broker will be able to get you the most recent update on rates, programs, options and all loans available to you.

5. Be realistic about what you can afford. Many mortgage loans require a substantial down payment, while others only require 5% and even 3%. Determine your best plan of attack with your mortgage professional.

6. Know what you’re getting in to. A loan officer should order a title search to ensure that the seller is the only person with claim to the property you’re looking at. They should also have the home appraised to make sure it is worth the asking price.

7. Know your deadlines! Buying a home involves many steps, and if you don’t do certain things on time the deal could fall through entirely. A loan officer will make sure you are keeping track of deadlines and necessary paperwork so that nothing is missed or overlooked.

8. Understand what fees to expect. Lenders charge several fees that are not wrapped up into the interest rate of the loan. Appraising the home, credit checks, bank audits and document prep all cost money. It’s important to know what additional fees and closing costs you’ll need to come up with.

9. Ask your loan office any questions you come up with. Understand what it means when you’ll be offered “points” on your mortgage (which are essentially prepaid interest purchases that may or may not be a good idea) and whether or not you’ll need to opt in for things like private mortgage insurance (PMI), which is required by most lenders unless you put down a larger down payment.

10. Come to the table prepared and armed with knowledge. Your loan officer should be at the closing in order to answer any last-minute questions before you sign the final paperwork and make a new home officially yours.

Buying a house is a serious deal, and you want to make sure you have someone experienced by your side to help you along the way. If you are thinking of applying for a home loan and need a referral for an officer, give The Coastal Marketing Group a call at (609) 884-4242. We work with some of the best in the business in Cape May County and have plenty of reviews and feedback from our clients. One of our agents will be happy to get you started on the path to your new home!