FinancingOptions

Lina Garcia
linagarcia@rogers.com
www.barriefamilyhomes.com / www.casaenbarrie.com
Direct: 705-721-2911
Toll Free: 1-866-942-2121

There are many different home loans available to fit almost any situation. I am often asked
“What is the best financing available for me?
Unfortunately there isn’t a simple answer to this question, but that doesn’t mean the process
has to be difficult either.
You will want to secure financing before you start searching for a home. This way when you
are ready to make an offer the seller will know you are a serious prospect for purchasing his
house.
When you start looking for financing What you do is work with an expert at finding home loans.
The professional you are looking for is a mortgage broker. A mortgage broker works for you to
help find the best loan to fit your financial situation.
The difference between going directly to a lender and working with a mortgage broker is that a
mortgage broker has access to many different loan programs through many different lenders,
so you will have more opportunities for finding the perfect loan for your new home with the
lowest interest rates.

You will want to interview at least three different brokers before deciding on one to work with.
Ask them specific questions regarding the loan programs they have for your situation.

You can ask them questions like:

•        What are the best loans you have for first time buyers?
•        How many points do you charge for the loan?
•        Why should I work with you instead of any other mortgage broker?
•        What is the best interest rate you can get for me?
•        What loan program/lender do you think would be best for me?

The broker will start the process by pulling your credit report and collecting a bunch of
documentation from you including your last couple of years tax returns, your most recent pay
stubs and bank account statements.

The only fee for starting the process is generally $15 to $25 for a credit report so they can view
your current credit.

Your mortgage broker will give you a complete list of what is necessary before you come in for
an appointment with them.

A good mortgage broker will thoroughly answer all your questions and find the perfect loan for
the house you are looking to buy.

After you meet with them they will be able to get you a pre-qualification letter that shows your
debt to income ratio has been analyzed and that the broker is confident that they can get you a
loan.

A pre-qualification is the step that comes before an actual approval. If you get pre-approval for
a loan, it means you are ready to buy and the loan has actually gone to an underwriter and
they are ready to get you the money for the loan as soon as you get an accepted offer for the
home you want to purchase.

It is not necessary to get pre-approved, but you will want to make sure you get pre-qualified
before you start your home search, so that you know how much home you can afford. This
way you will be able to make an offer right away if you find the perfect home for you.

The most important determining factor when choosing your loan is the interest rate and the
points you will be paying on the loan.

Each point is simply 1% of the loan you will be getting. Generally you will be paying one point
to the mortgage broker for getting you the loan. That is generally how the mortgage broker
actually gets paid.

You can actually pay additional points to lower your interest rate. If you have cash on hand
and are looking to lower you monthly payments and the overall interest you are paying on the
loan you may want to have your mortgage broker run some different numbers for you so you
can weigh the pros and cons.

It is important to get pre-qualified for a mortgage loan before you start looking for a house. It is
frustrating when the perfect house comes on the market, but someone else’s offer gets
accepted because you didn’t have a pre-qualification letter.

If you are short on cash there are actually some 100% financing loans available so just
because you don’t have a down payment doesn’t mean you cannot get into a house. These
are especially easy to get into if you are a first time buyer.

With today’s low interest rates you may want to get pre-qualified for a fixed-rate. Some lenders
may charge a fee for this service, but others will not. The advantage of having a fixed-rate is
that you will know very closely what your payments will be when making an offer on the property.

The downside is that interest rates may continue to fall and you may not be able to get the
better interest rate if you have decided on a fixed rate.

Getting educated on the process before you jump into buying your home can help you with the
loan process and put your mind at ease as you go out to buy your home.

Make sure you get all your questions answered before making a decision on your loan and be
sure to work with a mortgage broker you feel comfortable with.

How do you find the best loan for your home? Where do you find a good professional
to work with? How do you get the best interest rate? This report will help to put your
mind at ease as you get answers to finding the right financing for your new home.
SPECIAL REPORT:

What is the best financing for Your house?