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Tips From Mortgage Lenders

• Find a reliable loan officer: Word of mouth is your best tool for this. Speak with your real estate agent, title attorney, close friends or family members. You want to make sure that your loan officer is someone you can trust and that you feel confident will get you the best mortgage possible. You’ll want to make sure they return your phone calls and answer your questions in a timely and honest manner.
  

• If it sounds too good to be true, it probably is: When it comes to making such an important purchase as your home, it’s easy to fall prey to what sounds like an incredible deal. Make sure to get all the details of your loan in writing before you sign contracts to purchase a house. Be sure all the terms and conditions are clearly written and that you question anything that seems vague.

• Ask questions: A home is the largest purchase most people make in their lifetime and a mortgage payment will be the largest expense you have each month. It is vital that you feel comfortable with the process of getting your loan and with the eventual outcome. Don’t feel pressured by anyone to agree to a loan you aren’t comfortable with. You are the one who will be responsible for the mortgage payments and you will face the consequences if you are unable to maintain them.

• Compare lenders: Banks and lenders have numerous programs available to them and sometimes they offer special programs that are not offered by other lenders. Be sure to explore as many options as you can. There is such a wide variety of loan programs available, it is important you are getting the best loan possible for your individual needs.

• Have your financial documents ready: Most institutions require actual income documents. Have them ready in order to expedite the process. Two years of W2s, 1 month of pay stubs, 2 months of bank statements, explanations for any derogatory credit reports, etc.

• Know the steps to your loan process: Familiarize yourself with what to expect. It will help ease your stress, and help prevent you from being taken advantage of. Your loan officer will thank you as well!

Key Terms:

Pre-approval: This indicates your ability to obtain a loan and that your information has actually been submitted to a lender.

Rate Lock: Make sure you have a “locked-in agreement” from the lender that will be providing your loan. This will ensure that the interest rate you agreed to will still be your interest rate at closing regardless of changes to the market.

Disclosure and Good Faith: Within three days of your application being submitted to the underwriting department you will receive a package of disclosures. This will include the Good Faith Estimate, which will give you an idea of how much you will need to bring to the closing table in order to cover your closing costs

Conditions - About the time you receive your Good Faith Estimate you will also receive a notice to provide any further documentation regarding your income and/or debts. These are conditions that must be met in order to continue with the underwriting of your loan. Once this is submitted to the lender, your loan will be prepared for closing.

Island Advantage Realty

Island Advantage Realty, LLC has established itself as an innovator and leader in the REO market throughout Metropolitan New York and Long Island. With 20 years of experience handling foreclosed and residential properties, you can rely on our knowledgeable team of agents to assist you with all of your Real Estate needs. Trust the experts. Trust Island Advantage.

Island Advantage Realty knows that your privacy is important to you.  That's why we want you to know that your information will never be sold or dissemination by us to anyone without your permission.

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