As I will allude to in the ladder part of this post, success leaves clues, and if you want to have a successful process in your first home purchase, you will need to be aware of top important factors. I believe it is important enough to be prioritized in the beginning of this post, for your protection, the state in which my experience has witnessed the lack of ability for local major banks to handle a successful transaction. This is NOT the time to think that using your local bank for your mortgage is the safe option. For some reason, the major banks, appear to have not successfully regrouped after the major mortgage crisis hit, and their turn-times, level of service, and ability to follow through is embarrassingly ugly…as many of my advocates and clients have mentioned.
Success leaves clues, so look for testimonials, because they are concrete evidence of previous success. The picture below is one of me, and a recent first time buyer family, and the Realtor Jim Hays. Here is the testimonial they wrote on my trusted top ranked mortgage site.
The number one factor that a first time buyer should really take into account,
which is the same number one when learning anything, there are no dumb questions. If the loan officer you talk to makes you feel dumb for a question you asked, reaffirm to him that you need complete understanding before you can move on to the next steps. After nearly 9 years in the industry, most of the buyers that ended up lost or frustrated by the end of the transaction did not allow me to sit down with them in the beginning, or have an extensive voice to voice to allow me to fully express what their expectations should be throughout the entire process. So, stop procrastinating to have that heart to heart with your trusted loan guy (hopefully it’s me, Your Frisco Mortgage Guy for Life) and sacrifice your time for your benefit.
We, in the mortgage industry speak Martian Language, so learn your terms.
It was once expressed to me that the smartest countries are the ones that have the language that is more extensive, because the more expressive the language, the better one could be understood. This fact serves a purpose in learning mortgage terms. If you do not attempt at learning terms like, principle, equity, lien, mortgage, in the end you may be forced to realize terms like, foreclosure, shortsale, default, and bankruptcy. When talking with your mortgage consultant, you will find a more clear path to understanding what loan options and loan structuring is best for you, if you can learn just the tip of the iceberg of Martian language.
When all else fails in figuring out what sale price is right for you, back into it.
There are going to be additional costs on top of your mortgage monthly, like: electric, water, premium TV like DISH or Cable, yard maintenance, HOA’s, general unexpected home maintenance. Figure out what monthly you can comfortably pay every month toward your mortgage loan and monthly taxes and insurance, and then think about realistic extra costs. When you figure out what monthly you can afford toward just the home and escrow (escrow=monthly taxes and home insurance), give that number to your loan consultant and tell him whereabouts you are looking to move. From there, he and you can locate the county appraisal district for that area to see what property taxes will be, and then fine adjust until the sale price with other down payment, interest rate, and other variables brings you to your comfortable monthly. If you are trying to calculate a monthly, you can you the best Frisco Mortgage Calculator to help you realize what monthly payment will come with your desired loan amount.
Lastly, find the right loan consultant for you.
Do not feel pressured or obligated to use a friend or family member in the business, if you are not completely convinced that they can lead you like the best can, and fulfill your highest financing benefits. There should be no reservations from a friend or family member in the business if you explain to them that buying a home is the top most expensive purchase you make a couple times in your life, and it comes down to more than just helping them get your business. This process is important. To close out, I will leave you with one of my favorite quotes. “You are where you are today because of the decisions you made yesterday”.