There have been many recent changes in the mortgage industry, requiring increased consumer understanding. Following are 5 steps that will help buyers select a qualified lender!
1. Buyers should work with "well-capitalized" lenders who can ensure funds will be there at closing. As liquidity tightens, mortgage companies are struggling to fund their loans.
2. Buyers should work with a lender that can offer a variety of loan products. There are many types of loans available including FHA, VA, Conforming & Non-Conforming loans.
3. Buyers should ALWAYS get preapproved versus prequalified. I have learned this the hard way! Nobody benefits when time is spent house hunting, only to learn that the buyer does not qualify for a mortgage. Sellers should ALWAYS demand a fully underwritten preapproval (subject to appraisal) before tying up their property.
4. Sellers should also get preapproved if they are mortgaging their next transaction. Due to recent mortgage changes, some sellers may find that they no longer qualify for a new home loan after they sell their current residence.
5. Buyers should work with a lender that will give them an "on-time" closing guarantee. Recent documentation changes have slowed the processing time for many mortgage loans. An on-time guarantee demonstrates lender confidence in their ability to make the closing date.
Contact the "4forU" Team for a list of qualified lenders with proven performance records.
