Financing Your Purchase
Starting a search to purchase a new home is an exciting time! Before you schedule your first home tour, make sure to determine if you will need a loan. If so, set up meetings with a few lenders and get pre-qualified for a mortgage. It's important to ask potential lenders questions to make sure they are a good fit for you, such as:
- What type of loan do you recommend for me, and why? One type of mortgage loan isn't superior to another—but whichever you choose, you need to know why it’s best and how it works.
- Will my down payment vary based on the loan I choose? If you’re tight on cash or don’t want to be cash poor, let your lender know. Loans vary in their down payment requirements.
- What is the interest rate and the annual percentage rate (APR)? Everyone talks about the interest rate, but the APR is just as important. It combines the interest rate with the fees a lender charges to originate your loan.
- Can I lock-in an interest rate? If so, for how long? If you think rates will be moving up, ask if you can lock it in for a set period of time.
- What will my closing costs be? Are they a part of my loan, or will I pay them in cash at closing? Closing costs usually run 3-6% of your loan value so you need to know how they’ll be covered.
So if you're planning to get a loan, I'm happy to advise you or connect you with some reliable local lenders. Remember, I'm here to help guide you through the purchase process from start to finish!
