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9 Important Reasons Why You Must Talk with a Lending Agent

If you are considering a home purchase, either for your own personal use or as an investment, you need to meet with a lot of people. Most know they need to talk with a real estate agent, but you should also talk with a lending agent, one who can help you start the loan process and work with you until final closing.

9 Reasons Why You Should Talk with a Lending Agent

1. Get a Deeper Understanding of Available Loan Options

Loans should be fairly simple, right? In theory, they are. But in reality, there are many details and variables that impact the overall affordability and quality of your loan. Factors that you need to understand are not limited to loan term and interest rates; you also need to understand ARM loans, fixed rate, points, DTI, LTV, credit scores, and more.

With so many details, it can be hard to fully understand loans. However, talking with a loan agent helps you gain a thorough knowledge on the subject. You may not become an expert, but a basic understanding can go a long way.

2. Helps You Find the Right Loan for Your Purchase

There are many loan options available, and each one has its own specific details. Some loans have better interest rates, some are available with adjustable-rates, some can be secured with a low downpayment; which one is right for you?

Talking with a loan agent who understands the available loan options will allow you to make the right decision for your future. For example, you may find that a low-downpayment FHA loan is the right option, or you may find that a conventional loan is the right choice for your situation.

3. Point You Towards Available Assistance Programs

No matter where you live, there are possible assistance programs that can make your loan more affordable and make homeownership more attainable. For example, there are federal, state, and local programs that can assist with your downpayment needs. Depending on where you live, you could have access to thousands of dollars in grants and other benefits.

Programs like the Good Neighbor Next Door (for law enforcement, firefighters, teachers, and EMTs), the National Homebuyers Fund, and local grants are just a few of the options that your lending agent can help you uncover.

4. An Informed Buyer is (In Most Cases) a Successful Buyer

As the saying goes, information is power. When you talk with a lending agent, you’ll get the information you need to be a confident and strong buyer. While this can’t guarantee success with your purchase, being informed greatly increases your chances of a positive experience.

5. Specify Your Budget Before You Shop for Homes

Many people start looking for a home with just a vague idea of their overall budget. They might have a loose thought about how much home they can afford, and they start searching for houses that they think are within their budget.

After you talk with a lending agent, you’ll have a clear idea of how much house you can afford.

But talking with a lending agent actually defines the budget, so you know exactly how much you can afford. In some cases, you may discover that you can’t afford quite as much house as you thought. On the other hand, it’s just as common for people to learn that they can buy more house than they knew. Once you have a specific budget, you can start looking at home that fit this range, which streamlines your home-buying efforts.

6. Enhances Your Buying Potential Through Pre-Approval

Sellers and real estate agents want to work with people who are pre-approved. Pre-approval is not an official offer of a loan. Rather, it is essentially a statement that, once you find a house to buy and assuming nothing has changed in your overall financial picture, you will qualify for a certain amount.

This simple document from a lender might seem insignificant, but it can have a powerful effect on your home shopping. Essentially, sellers and selling agents like to see that you have been pre-approved for a loan, as it all but proves that you will qualify to purchase the home. In fact, some sellers won’t even show a home to a buyer until they have been pre-approved for a loan.

7. Know Exactly How Much You Need for a Downpayment

The downpayment is often the biggest roadblock to homeownership, and some people have little or no idea how much they will need. Do you need $1,000 or $50,000? Like everything in real estate, there is no single answer for all people.

To completely understand how much you will need for a downpayment, you must talk with a lending agent. This person can give you clear, specific information on how much money you will need, which prepares you for the purchase process. After meeting with a lending agent, you’ll know if you have enough money for the home you want, or if you need to keep saving for a couple months or even a year.

8. Makes Paperwork More Efficient and Effective

There is a lot of paperwork involved in a home purchase. Getting ahead of the process is often your best strategy. When working with a lending agent, you can get through the massive amounts of paperwork quickly, often early, which makes the entire process just a bit easier. If you are dedicated to moving through the home-buying process as quickly as possible, it’s best that you talk with a lending agent immediately.

9. Fewer Surprises

Especially if you have never gone through the home-loan process, there can be a lot of surprises, like budgets and available homes. Other potential surprises include downpayment requirements or  closing costs. And in most cases, these are not welcome surprises. When you talk with a lending agent, you can temper some of your expectations so you are better prepared for the entire process of getting a loan.

The Right Lending Agent for Your Next Purchase

You deserve to work with a world-class lending agent. Contact Chad Baker and his staff of experts today and you’ll get reliable advice and outstanding service from a team that truly cares about your results.

With a common-sense approach to underwriting, we can help you find the right loan and increase your chances of mortgage approval.

Have a Question? Let’s connect!

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Chad Baker, CrossCountry Mortgage   
NMLS# 329451 | CCM NMLS# 3029