Thoughtful parents could/should pass the wisdom to their children—by instruction, by example, by constant reminder: Nothing about purchasing a home is easy. Everything about the purchase of a new home is gruelling, torturous, agonizing, and overwhelming and emotional even if it shouldn't be to get a good deal. Seek professional help. Enter mortgage agent and real estate agent.
A home purchase requires hours and hours of investigation, inquiry, thought, reflection, and soul-searching. You will see your dream home, and still you will doubt. Can we afford it? Do we need it? Is it too much? Where will the family be and what will they be doing in five years, ten years, or twenty years? Moreover, a home purchase requires mountains of paperwork or electronic documentation, and it then requires more hours of legal review. Lenders want proof and certification of every detail in your credit application. In short, parents ought to teach, “When you go to purchase a home, put the rest of your life and business on-hold; take a leave of absence from ‘normal, and take a sabbatical from sanity, because the process will consume your life.” Parents then strongly should recommend—as they recommend looking both ways, flossing every day, and attending to the five food groups—their children should solicit professional help with every aspect of the home-buying process.
Simplify the inevitably complicated process of buying a home, hiring a real estate agent to sell your current home and find the next one; and hire a mortgage agent to find and secure your financing. Just as the real estate agent takes the wear and tear out of selling your “starter” home and finding the one that suits your dreams, so a mortgage agent saves your precious time and your money, finding the best mortgage at the best rates. A mortgage agent will help you maximize your leverage on the money you need to buy your dream house. Moreover, your real estate agent and mortgage agent collaborate, assuring your transactions satisfy all the real estate and finance laws.
How much do you really know about home mortgages?
Most homebuyers make a few calls to reputable banks and mortgage agents, overlooking some of the best sources of low-interest home financing. In fact, more than half of new homebuyers consult the banks where they have their checking accounts and credit cards, either agreeing to the bank’s rate and terms or soliciting the bank’s recommendation for a lender. They imagine that the bank or its partners must offer the best deal in town. Most homebuyers do not know or understand the wealth of options available to them; how much do you know? More importantly, how much time do you really have to find out?
First, do you know the difference between fixed and variable rates, and do you know when, despite experts’ cautions, a variable-rate mortgage might work to your advantage? Do you know how most banks and lenders set their mortgage interest rates; and can you explain what triggers increases and decreases in lenders’ rates? Do you know how lenders determine whether you have sufficient income and net worth to qualify for their preferred rates, and do you understand how you can improve your credit scores before you go shopping for a mortgage? Can you explain the differences among open, closed, cash-back, equity take-out, and cash-back arrangements? You probably have heard that the majority of reputable lenders require 10% down-payment on the purchase of your home; do you know when you might buy more home with a lower down-payment? Do you understand what “closing costs” entail and how you will manage them?
One piece of advice to those looking to buy a home. Choose a great mortgage broker and real estate agent, and you'll see the sun shines harder on your side of the street!