Real Estate Trends: Saying YES!

Last week Builder Jon Girod wrote about special product requests in home building. Nobody wants to be all excited about planning a home and then getting stressed or time-crunched about obtaining the financing. With that thinking and because we are entering into a new home buying season, here are few questions you should ask when you are preparing for the best financing:

1. What are the loans that are offered and how can I qualify for the loan I choose?
2. What interest rates are offered with each type of loan offered and what is the annual percentage rate (the APR is the amount of interest and other lender fees, divided by the term of the loan)?
3. What is the monthly payment for the spending amount I have for a home?
4. What is the required down payment or is a down-payment required (some loans do not have a required down payment such as a Veteran Affairs loan)?
5. What if I decide to pay my loan early? Is there a prepayment penalty?
6. What costs are associated with arranging a loan? Every lender operates differently regarding appraisal reporting, title policy, escrow and credit reporting.
7. How can I lock in the loan rate and is there a charge to lock the rate?
8. How much time will it take to close the loan? This is important, because you’ll want to schedule movers and be sure that if you have a rate lock that you meet the terms.
9. Will my loan be sold or will you be servicing my loan?
10. Can you explain how points work and how I might save?
11. How can I be prepared for closing costs? Typically, closing costs or the fees associated with transferring ownership of the home can be 2 to 5 percent of the home’s purchase price. These costs can be negotiated to be paid by the seller or shared. Ask for help before you sign.
12. How does escrow work and what should I expect? Escrow is money that the buyer puts down to fulfill costs associated with completing the transaction. Sometimes escrow can be paid in monthly terms. Be sure to ask.

If you are in the Vancouver market area, Peak Mortgage is your local source for home mortgaging help. Call or email MPattullo@PeakMtg.com

We lend where we live,

Mike