Dos and Don’ts for _ Smooth Mortgage Loan Process
In order to close _ loan quick and to __ the best service possible __ suggest following this list __ Dos and Don’ts
Housing Terms 101
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When preparing to buy _ home, the first thing homebuyers should do is down with a Mortgage _ Originator and go over _ mortgage application. During the _ process, homebuyers will learn loan options available to _, what payment estimates look _, what they can afford what payment fits within budget. The application process _ determine what buyers are __ for and results in issued a prequalification letter. __ having this letter in _, buyers are able to in touch with a and trusted Real Estate to begin the home _ process. By speaking with _ Mortgage Loan Originator first, _ can be comfortable throughout home search process in _ price range they should __ searching within and what range they are comfortable _. In a competitive marketplace, prepared and knowing your __ will be a distinct _ over other buyers who _&;_ certain on financing options.
Throughout the process, homebuyers _ hear terms that are used during this process. , lenders, home inspectors and _ may refer to terminology to obtaining a home _ or specific to purchasing _ home. Some common terminology definitions are listed below:
- Annual Percentage Rate (APR) – This is actual rate of interest _ you repay the loan. APR takes into consideration interest rate plus loan _ over the course of _ year. This is a comparative tool if you shopping around for a . Lenders may offer the _ rate but may have _ APR’s based on loan _(_).
- Loan Estimate (LE) – All lenders required to disclose a _ estimate once an application been processed and a has been selected for . The Loan Estimate is _ what it says, an estimate of the loan , escrow set ups, etc. LE also covers the of the loan, interest _ and shows an estimated __ payment. If you are _ for the APR on _ loan, you can find __ on an LE.
- Down Payment – The down __ is truly what home _ put down. This is difference between the purchase and your loan amount. _ down payment on the _ loan will not be until closing and will __ paid along with your _ costs and prepaid items.
- Points – Home buyers pay a lender points __ reduce the interest rate __ the loan, resulting in _ lower monthly payment. The (_) paid is a percentage, _ one percent, of the _ amount. Depending on the , one point may lower interest rate on the _ one-eighth to one-quarter of _ percent.
- Private Mortgage Insurance (PMI) – Private Mortgage _ is something that homebuyers _ pay with conventional financing __ they aren’t able to _ a 20% down payment. is separate from home _ and in most cases _ eventually go away once &;__ obtained enough equity in _ home.
Find a member of Great Western Bank Mortgage _ near you.
Chris Knight
Mortgage Manager
Great Western Bank
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