4 Insider Tips for Getting Through the Mortgage Process
Exciting and confusing!
You are buying your new home, and this is so exciting! And confusing? The professionals are spitting out buzz words, rates, numbers, and rules all over the place. I guarantee that you are hearing terms you have never heard before. And that’s OK. Here are some great insider tips for helping you through the process. Keep up the excitement and let’s get rid of the confusion.
Tip #1 Check your own credit FIRST
Before you decide to hire a real estate agent or a mortgage broker – check your credit. You can order your own credit report through many different sites online, such as FreeCreditReport.Com, AnnualCreditReport.Com, or directly from Experian, Equifax, Transunion, or Credit Karma. Check them out, and make sure that all three credit bureaus are on the report.
Check out the report and look for anything that needs to be corrected before you begin the process. Look at each trade line for late payments, incorrect information, and errors. It is very important to have any errors fixed before you start the process, so do that now.
Tip #2 Check out down payment rules
Does your lender require your down payment to be “seasoned”? You need to know the answer to this question, especially if someone is helping you out with the down. Many lenders may require your funds to be seasoned, and they also need to know the source of the money.
Tip # 3 Understand your loan disclosure forms
Lenders and mortgage brokers are required by law to provide specific disclosures to borrowers. These disclosures, which are governed by federal laws put into place during the ’70s, are called truth-in-lending disclosures (also known as RESPA). Required documents include a Special Information Booklet, a Loan Estimate and a Mortgage Servicing Disclosure Statement. Borrowers are supposed to receive these documents either at the time of application or within three days of applying for a mortgage. Here’s what they explain:
Special Information Booklet – This booklet contains a host of information for the buyer, including timelines, what to look for when shopping for a loan, loan program information, and more. This booklet is printed in “easy-to-understand” language, so you know what you are getting into.
Loan Estimate – This document typically contains information about how much your down payment will be, how much your overall closing costs will be, and other helpful information you will need to determine your overall loan costs.
Mortgage Servicing Disclosure Statement – When you sign your mortgage note, there is a good chance your lender will not be collecting payment for your mortgage. Many lenders “farm out” their ongoing loan servicing to a third party, or sell your loan to another lender. The Mortgage Servicing Disclosure Statement is intended to inform you of who will be servicing your loan after closing.
Finding your perfect home is just the first step toward your dream of home ownership. If you have any questions or concerns regarding any documents or statements your lender makes, you should speak with them before you sign any loan documents.
Tip #4 Hire the best
You want to surround yourself with professionals, and none are more important to your buying process than the mortgage broker you select. Feel free to call us at Lending Maven at (303) – 845 – 5436 with any questions, or to start the mortgage process. Lending Maven is a Colorado company. We live in and know about Denver, Aurora, Highlands Ranch, Lakewood, Lowry, Stapleton, Castle Rock, Parker, Colorado Springs, Fort Collins, and Pueblo, as well as the front range of Colorado.
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