Buying a house and getting a mortgage can be stressful. Here are some answers to some common questions.
1. Why should I use a real estate agent?
You need an experienced professional working on your behalf. As a buyer you have little to lose, since the realtor’s commission is not paid by the buyer, but by the seller. Additionally, it is in each party’s best interest to have professional representation. As a seller, you can command a greater price by having an experienced real estate agent market and sell your home, rather than deal with the headaches of trying to do it all on your own.
2. How do I find the right real estate agent?
Having the right realtor is a very important part of a successful home buying experience. I work with a select network of ethical and experienced realtors in the Greater Phoenix Valley, who have a proven track record of satisfied clients. Please let me know what your needs are, and I would be happy to recommend a high quality realtor that matches your requirements and preferences.
3. Why did my real estate agent refer me to you?
A high quality realtor knows the key to a successful transaction requires TEAMWORK with a professional mortgage professional. Any experienced realtor will tell you horror stories about times when a client made a poor choice of mortgage company, and ended up with big surprises at the closing table, or worse, no closing taking place at all!
A good realtor will form relationships with trusted mortgage professionals who have proven track records, so they know you will be given the excellent service that you deserve. I have worked with your realtor to develop the kind of professionalism and service you require. That is why your real estate agent referred me to you.
It is important for you to know that your realtor is NOT given any compensation or “kickbacks” for referring you to me. As a mortgage professional, I desire more referrals, both from you and your real estate agent, so consider the extra motivation this provides for me to take great care with your satisfaction!
4. How do I get pre-approved?
Very little is required to get a pre-approval. I can take all the necessary information over the phone. Generally, if you have a few basic items available to fax, such as a recent pay stub, last two years of W2 statements, and a recent bank statement, I can provide most clients with a pre-approval letter within 15 minutes. Contact Academy Mortgage.
5. Why and how do interest rates change?
Many people are surprised to learn that rates change on a daily and sometimes hourly basis. Interest rates fluctuate in response to changes in the financial markets. The bond market is generally a good indicator of the general trend of interest rates. A good mortgage professional will be able to educate you on recent trends and lock you in at that right moment.6. What happens once I am pre-approved?
Once you have a pre-approval you are ready to buy a home. Keep in mind that it is very important to inform me of any changes in the financial information that was provided at the time of approval. Significant changes, such as a new car, new job may make a change in the amount or type of loan that you can qualify for.
7. When should I consider refinancing?
The old rule of thumb was, refinance if you can reduce your rate by at least 2%. However, in today’s environment this is no longer the case. Many different factors need to be considered in order to determine if refinancing is right for you, such as the length of time you intend to stay in your home, or the type of loan you currently hold. I am always happy to provide a recommendation to you for your particular circumstances. Contact Academy Mortgage to see if you should refinance.
8. What is an origination fee?
Origination fee is charged by the mortgage broker for the work done in providing you with the loan. Typically, orientation fees amount to 1% of your loan amount. You can avoid all or part of this fee by paying a higher interest rate. In Arizona, rates are typically quoted assuming this 1% origination fee.
9. What is discount points?
This is a fee you pay to “buy down” a rate. If you feel you want to pay up front to get a better rate you can do it, up to a point. I can help you determine if this is right for you, contact Academy Mortgage.
10. What is title insurance?
This is a policy provided by the title company guaranteeing the accuracy of the title work done on your home at the time of purchase. As a buyer, you are required to purchase a lenders policy of title insurance as part of your standard closing costs, which only protects the mortgage company. You may also choose to purchase an owners policy, which would protect you against any loss in the event of any legal issues relating to the title of your home.
11. What is mortgage insurance?
This is insurance you purchase when the down payment is less than 20% of the value of the house. It protects the lender in the event of loan default. The lower the down payment, the higher the risk for the lender, and thus the higher the monthly premium. Depending on your situation, there are ways in which mortgage insurance can sometimes be avoided at purchase, or dropped altogether at some point in the future.
Are your questions not answered? Contact Academy Mortgage.