Melissa Castillo Realtor Kehoe Realty Inc. melissa@kehoerealty.com P.O Box 496, 901 N. M-18, Gladwin Michigan 48624 Home Office: 989-426-2583 Pager: 989-440-0400 Toll Free 1-800-426-0664 |
| Before you start shopping, it's very important to find out what price range you can afford. Many people make the mistake of shopping for a home first, only to find out that their home of their dreams is out of their bank approved price range. Unless you are already planning to pay "CASH" for your home or property, it's time to shop for a mortgage. |
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| Buyer Preparation |
| Now that you've made that big decision to buy that home or property, how do you prepare yourself for the steps ahead? |
| What should you look for in a lender? · Shop for a known or reputable company. There are a lot of mortgage lenders out there to choose from. Often it's hard to know which one to go with. Look in the phone book or online, for companies who's names may be farmiliar. Better yet, if you have access online, look up companies the you are possibly considering on the Better Business Bureau web site and see if they are in good standing. · Find a lender that is willing to pre-approve you without an up front fee. Most reputable mortgage companies will offer this service for free. Once you are approved they may ask for fees once you decide to go forward with a purchase, such as credit report and appraisal fees. Usually this is not done until you have located a home or property to purchase. · Shop for the Best Interest Rates and Closing Fees. Each mortgage company is different. Shop around and ask what their interest rates are. Also, ask about what types of closing costs and the amounts you might expect at closing and get it in writting. Sometimes companies may offer good rates but nail you when it comes to closing costs! Shop around and don't be afraid to ask. · Ask weather there are any prepayment penalties. Some loans may have prepayment penalties. Make sure that you ask your lender if your loan has one. If so, what are the penalites and would you be comfortable with them if you decide to sell your home within a certain amount of years after purchase? Also, are you able to make extra monthly payments without penalty? · Are they offering you an arm or a fixed interest rate? Often this is something that many people don't understand. Many mortgage companies offer an arm or fixed rate depending on your credit or the type of property you are purchasing. If your credit needs a little work, many lenders might offer an arm loan. An arm loan simply means that your interest rate may adjust upward by a certain percent after an estabished period of time. Many arm loans are done in 3 or 5 year terms, meaning that your given rate will not change until that many years pass. Most people that take advantage of the lower arm interest rate, will make the decision to refinance their loan before that period is make extra monthly payments without penalty? |
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