With American homeowners choosing to pay down their mortgages over a period of 25 years or more, it’s safe to say that a home loan is probably the biggest and most impactful financial investment you’ll ever make in your life. The mortgage application process, however, can be complicated, requiring a knowledge of financial jargon, from credit scores, APR, and mortgage interest rates, to insurance fees and closing costs among others.
A mortgage advisor’s job is to help you make sense of everything about the mortgage application process. The right advisor can be an invaluable part of your journey towards home ownership. Here are five reasons why.
Expert Advice
Even if you have a decent understanding of the basics of getting a mortgage, having an advisor who is trained in every aspect of the home loan process will simplify the mortgage application process. More importantly, advisors know how to avoid common mistakes that often cause homebuyers to pay more on their mortgage than they should. If you want to save time and money, you can’t go wrong working with a mortgage advisor.
A Partner Who Understands Your Needs
Having someone who can help you understand your financial history and the current situation is half the battle when applying for a mortgage. By doing so, you can shop for a mortgage and make an informed decision that’s actually based on your current spending capabilities. If you don’t want to be one of the thousands of borrowers who make the mistake of biting on the first mortgage they see, consider working with a mortgage advisor.
An advisor will also draft a mortgage plan, which may be a long-term or short-term strategy, depending on your needs. This ensures you can pay down your loan as quickly as possible while still having enough money for your living expenses and savings.
Repairing and Protecting Your Credit Score
Working with a mortgage advisor at least six months before applying for a home loan should give you enough time to address discrepancies on your credit report and repair your score. A high credit score, in turn, not only improves the odds of getting your mortgage application approved, it also ensures you get your loan at the lowest possible interest rate.
You Go Beyond Making Decisions Based on Interest Rates
Many lenders like to advertise low mortgage interest rates to entice prospective homebuyers to apply for a home loan with them. But interest rates only tell one side of the story, the amount of money you’ll be paying each month. An advisor will help you identify the mortgage’s annual percentage rate (APR), which is the true cost of the loan, which includes loan origination, mortgage insurance, and processing fees. This way, you’ll know the full scope of the financial investment you have to make.
A Mortgage Advisor Is on Your Side
Last but not least, working with a mortgage advisor means you have someone on your side working on your behalf, not the realtor, not the property owner, and definitely not the bank. Whether you are a first-time home buyer or a veteran investor, your mortgage advisor’s job is to find the best lender and deal for you.
If you’re ready to begin your journey towards home ownership, get in touch with mortgage advisor Chris Lamm create a mortgage plan for your needs. Call our offices at 530-282-1166 for a consultation.