Some of you may have seen this piece of art in our conference room. It’s by Jeff Leedy, an artist in Sausalito, California. Jeff captions thoughts of both wife and husband perfectly…
Wife’s Thoughts: Afraid The Loan Won’t Go Through
Husband’s Thoughts: Afraid It Will
Buying a home is such an emotional experience. Not only do you have the actual house buying process, but like most home buyers, you also have the mortgage progression to deal with. Borrower preparation and efficient mortgage company hiring is essential.
Terms can sometimes confuse borrowers, especially the distinctions between prequalification, pre-approval, and final approval or commitment.
Another bone of contention for borrowers is the idea of paying POINTS. I believe borrowers who refrain from the expense of a point are typically better off.
Sometimes it makes sense to pay a point, however. The decision to do so is generally dependent upon recurring and non-recurring costs and the desired price range of a borrower’s monthly payment.
How much is needed for a down payment?
Unfortunately, no standard answer exists. Down payments vary from 0% (VA Loan) to 3% (FHA Loan) to 10% (Conforming Loan) to 25% (Non-Conforming Loan). An average down payment is 5%-20%.
Some people choose to work with a bank while others prefer a mortgage broker. Costs can vary depending on who you choose to work with. In order to decided which entity best suits your needs, go into the process with an understanding of which fees are fixed and which are negotiable.