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It is highly recommended
that early in the home buying process a Buyer should choose a
knowledgeable and trustworthy mortgage loan officer.
Mortgage companies,
like most consumer service businesses are highly competitive. When
comparison shopping we recommend that our customers look at the whole
picture. By that we mean that the quoted rate on any given day is just
part of your total transaction cost. Different mortgage companies will
vary somewhat in fee structure and closing cost. Additionally, rate quotes
will vary on a day to day basis, not only from different companies but
also within the same company. The reason can be as simple as the various
institutional investors simply want to either expand or minimize their
exposure at a given rate structure. There are many factors that effect
rate quotes.
It is in your best
interest to secure "pre approval" prior to shopping for a home. Some of
the benefits include:
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You can concentrate on homes in your price range.
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Rates can be `locked' in advance of shopping.
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The type of loan required is known at the time of Contract signing
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Peace of mind knowing exactly what you can or cannot do.
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Trust level between Buyer and Seller is enhanced.
The process of `pre
qualifying' will include a meeting with the mortgage loan officer who will
outline the necessary documents you will need to provide, including tax
returns, bank records, proof of employment, income, and a list of debts and
expenses. All information provided is confidential, In addition to the
type of loan, rates, term, etc, the officer will discuss the various
options including origination points (fees) and mortgage loan insurance,
if required. |
