When you’re applying for a mortgage to help you seek the property you want as your dream home, you can expect to be working with several professionals along the way. Besides keeping in touch with a real estate agent to oversee the homebuying process, you will also have to talk to a loan officer too.
A loan officer holds a crucial position in the mortgage process because they serve as the middle-person between you and a potential mortgage lender who will help you with your finances. They will be with you throughout the entire home loan procedure, starting from your application to finally closing the deal on your new home.
Other than that, if you ever need to refinance a mortgage, a loan officer will be glad to assist you. Before you sign the deal and start moving into your new home, you must first guarantee that you have everything settled according to plan.
Keep reading below to find out what you should never forget to mention to a loan officer.
Determine the Available Types of Loan
It’s vital to note that mortgage loans come in various types. They include different interest rates, payment plans, and repayment methods. Even though you don’t quite know what you require yet, it will help to talk to your agent regarding what loans they’re handling.
They could offer VA loans or FHA loans—the former supported by the military and the latter by the government—conventional mortgages, non-conventional loans, and fixed interest rates. Some mortgages also come with adjustable rates. Your loan officer can help you figure out the best type of mortgage based on your needs and present situation.
Inquire about the Kind of Credit Involved
Depending on the mortgage lender you reach out to, they could initiate the mortgage process by giving you a soft credit inquiry. Moving forward, they will let you know once you’re qualified for the pre-approval, so you can get started with scouting for a home before processing the loan.
On the other hand, some loan lenders will choose to offer a hard credit inquiry from the get-go. If you don’t think you can take it or you end up switching to a different lender, it could significantly take its toll on your credit score, and you could receive a bad credit rating.
Find Out How Much Money You Can Borrow
An essential factor involved in seeking a mortgage for your home is asking the mortgage company you decide to work with how much money they’re prepared to lend you. Take note that the amount you can borrow is not the same as what you can afford in real life!
In addition, the loan that gets approved by your lender will be based on several factors, such as your current salary rate, your credit history, your paid and unpaid debts, and more. If you want to ensure you receive a high loan, it will be best to minimize your debts and control your expenses.
Learn about the Down Payment Policies
The total amount of the down payment you need to provide will ultimately be based on the type of loan you wish to apply for, including other qualifications like your job income and credit rating. Traditionally speaking, you can expect down payments to be around twenty percent of your target home’s price.
Home buying in Dallas with New Frontier Financial
The home buying process is complicated because it will involve plenty of applications to make, professional people to talk to, and decisions to think about. However, so long as you have the right people working with you, you won’t have a hard time going through it. Besides having a real estate agent, a loan officer will guide you to understand the loans, interest rates, and payment policies involved in closing a deal and acquiring your dream home.
Are you looking to hire a mortgage broker in Dallas, TX? New Frontier Financial is a full-service mortgage broker company offering help regarding refinancing, home loans, and investment opportunities. Get in touch with us today at (469) 886-8300 to schedule an appointment with a loan officer!