Are you saving up for a new home?
Buying a new home is an exciting adventure, but navigating the world of financing can be overwhelming.
Real estate agents in Ann Arbor are here to guide you through the do’s and don’ts of financing!
The Do’s of Financing:
Start the Conversation Early
Don’t hesitate to reach out to a lender as soon as you start considering buying a home. You might be closer to approval than you realize. Even if you’re not quite there yet, you’ll gain valuable insights into what’s needed, where you stand, and how to proceed. Plus, the guidance you receive is free!
Go Local
Opt for a lender with a local presence near the area you’re interested in. Just like working with a realtor familiar with the neighborhood, a local lender brings insight and reputation to the table. Online lenders might not offer the same level of localized expertise.
Explore Your Options
Look for a lender who offers a variety of financing options tailored to your needs. There are numerous programs with different criteria like credit scores, down payments, and closing cost assistance. Your lender can help you navigate these options and find the best fit for you.
Seek Underwriter Review
Ensure your pre-approval involves a thorough review by an underwriter. While some lenders offer quick “desktop underwriting” (pre-qualification), a fully underwritten pre-approval provides greater confidence and less surprises down the line, especially when making an offer.
Keep the Communication Flowing
Stay in touch with your lender regularly, sharing information openly and honestly. Don’t hesitate to ask questions or seek guidance—they’re there to help you achieve your goal of homeownership.
The Don’ts of Financing:
Don’t Delay
Avoid waiting until you think you’re ready for a pre-approval. Consulting with a lender early helps you avoid potential missteps and develop a solid plan with expert guidance.
Avoid Rate Chasing
While it’s fine to seek competitive terms, don’t get too caught up in chasing the lowest interest rates. Other fees and the lender’s track record in closing loans are equally important considerations. Keep in mind that if the loan never closes, the differences in rate will mean nothing.
Don’t Withhold Information from Your Lender
Don’t hold back information from your lender, regardless of whether it’s positive or negative. They need a complete picture of your financial situation to provide accurate guidance and ensure compliance with lending rules.
Don’t Make Major Financial Changes
Be cautious about making sudden changes that could impact your financial standing, such as changing jobs or closing accounts. Always consult with your lender before making any significant financial moves.
Don’t Neglect Your Credit Score
Avoid actions that could negatively impact your credit score, like missing payments or opening new lines of credit. Keep communication lines open with your lender to ensure you’re making informed decisions.
Real Estate Agents in Ann Arbor are Ready to Help You Buy Your Dream Home
Arming yourself with knowledge is the key to feeling confident in your financing decisions. By following these do’s and don’ts, you’ll be well-prepared to make informed choices as you step into the exciting world of homeownership.
Contact our local experts today for guidance on your home shopping journey!