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- Why get pre-approved until I find a home I want to buy?
- 100% loans, fact and fiction
- What about loan offers that sound too good to be true?
- How do I estimate my monthly home payment?
- What are the 5 major different types of loans? (lowest cost through highest)
- How do I know if I am getting a fair mortgage offer?
- How should I shop for interest rates and fees--should I just call around and ask lenders for their best rate quote?
- What services I should expect from my Loan Officer?
Why get pre-approved until I find a home I want to buy?
Knowledgeable sellers won't accept an offer from a buyer without a pre-approval letter. Why would they take their home off the market if they don't know if you can close on their home by a date certain?
If you aren't pre-approved when you start shopping, you will probably lose out on the home you want to a buyer who is pre-approved!
Also, how is your Buyer Agent going to know what homes to show you, if they don't know what price range you qualify for?
Successful Buyer Agents helping several buyers will invest their valuable time with clients who they know can buy.
100% loans, fact and fiction
A lot of companies offer a 100% No Down Payment Mortgage, but forget to tell you about the approximately $8,000.00 in closing costs you STILL have to pay. ;Closing costs are always outside the loan. Your home loan can be for up to lesser amount: the appraised price of the home or the contract sales price.
Closing costs can't be rolled into the loan, unless the sales price is raised, the sellers agree to pay the closing costs for you, and the home still appraises high enough.
SmartHomeBuyersDFW.Com affiliated Buyer Agents and Loan Officers working together for you as a "team" can provide you a true move-in cost typically of $1,500.00 or less, depending on the exact home you choose. Loans are subject to lender approval.
NOTE: Move-in costs do not included moving expenses, utility deposits, etc. They included the costs paid at closing specifically for buying and financing your home.
TIP: Always focus on move-in costs, NOT the percentage loan you are getting (like a 100% loan).
What about loan offers that sound too good to be true?
Like anything else, loan offers that sound too good to be true, may be! Some offers seen advertised regularly would result in the loan office earning $0.00 to make your loan.
Do you know many people who are willing to work 40 hours each week and not get paid?
Most of us have families we have to take care of and other responsibilities we have to meet.
Sadly, when buyers fall for these "bait and switch" offers, by the time they realize they aren't getting the offer they were promised, it is nearly always too late. They either have to accept the "real offer" or they often lose the home they want to buy!
As an example, no one wants to pay today's prices for gasoline! But wouldn't you be just a little suspicious if you saw gas selling at half price?
How do I estimate my monthly home payment?
To estimate your monthly home payment, figure 1% of the loan amount.
So for a $150,000 home loan, a good estimate would be $1,500 per month home payment, counting your estimated property taxes and estimated homeowners insurance. This is called you PITI payment (Principal payment, Interest, property Taxes, and homeowners Insurance).
Each $10,000 difference in loan amount will change the monthly payment by about $100.00 per month.
NOTES:
Different areas of town have different property tax rates.
Buyers insurance cost will be determined by their prior claims history, the claims history of the home they are buying, the buyer's credit scores, and the actual insurance company the buyer chooses.
Buyer's credit scores will determine their interest rates.
All of these factors will determine the actual total monthly payment for PITI.
The above formula is only for estimating monthly home payments, but is very accurate for that purpose. Usually, actual costs are lower.
What are the 5 major different types of loans? (lowest cost through highest)
These details are provided in our members-only area.
Our membership fee is currently being waived for a marketing test, so be sure to check out our "Members Benefits" section on our home page!
How do I know if I am getting a fair mortgage offer?
These details are provided in our members-only area.
Our membership fee is currently being waived for a marketing test, so be sure to check out our "Members Benefits" section on our home page!
How should I shop for interest rates and fees--should I just call around and ask lenders for their best rate quote?
These details are provided in our members-only area.
Our membership fee is currently being waived for a marketing test , so be sure to check out our "Members Benefits" section on our home page!
What services I should expect from my Loan Officer?
These details are provided in our members-only area.
Our membership fee is currently being waived for a marketing test, so be sure to check out our "Members Benefits" section on our home page!
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