How To Be A Borrowing Know-It-All!

real estate
Nobody really likes a know-it-all. But I think there’s one exception to that. I always want the loan officer I partner with to be one. And what’s even better than that – when a home buyer knows their borrowing stuff too!

As a home buying team, the more we all know about the loan process, the better off it will go. That’s why today I’m sharing these 6 top tips to help make you a borrowing know-it-all!

1. Plan for Closing Costs

Our job is to make sure you know about the mortgage closing costs, but they sometimes come as a surprise to borrowers when they see the final figures. Make sure you ask questions about closing costs related to each home you are considering. When you receive the Loan Estimate, review it in detail. The costs do add up and we don’t want you walking away in shock.

2. Delays Can Usually Be Avoided

There’s lots of talk in the industry about delays, delays, delays. And while that can happen, there’s some things we can do to help avoid delays. These three changes would require your lender to redo paperwork and could cause a slight delay in your closing:

  • an increase in your rate above certain tolerance,
  • the addition of a prepayment penalty,
  • or a loan-product change such as a switch to an adjustable-rate loan from a fixed-rate product.

Avoid these changes and your closing should run on schedule as we’ll discuss at the start of the process.

3. Closing Costs Can Be Shared or Seller Responsibility

Often times when we talk closing costs with homebuyers they are under the false impression that only they can pay their closing costs. In reality, closing costs can be shared or sometimes paid by the seller. Ask questions during the negotiation phase and it may help you get some of these costs shared or maybe paid by the seller completely.

4. The Right Documents Will Speed Things Along

Gathering all the documents required by your lender is super important. They will let us know exactly what is needed and it will be your job to make sure everything is in order. Being quick and thorough in gathering all the financial documents helps speed the process along and alleviates concerns near closing time.

5. Average Credit Is Way Better Than No Credit At All

You need a debt-payment history to show that you are a good borrower who pays back your loans. We need that information when it comes time to qualifying. Therefore, it is always better to have good credit than absolutely no credit at all.

6. Less Down Is Actually Possible

According to National Mortgage News, the average consumer thinks the minimum down payment for a Fannie Mae loan is 10% to 12% and in reality the minimums are really actually around 3% down.

We hope these 6 tips help you feel more knowledgeable and comfortable with getting a good loan for a good home. We’re here to help when you are ready and happy to answer your questions about this and much more! Start by calling me at (719) 447-7915 and we’ll have this process rolling quickly!

Questions? Contact The Shane Ray Team Today!
The Shane Ray Team

Colorado Springs REALTOR®

The Shane Ray Team

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