By: Chris Britton, The Solutions Group, Union Home Mortgage
- Start the process as early as possible – With the Pandemic came uncertainty in the markets. Some guidelines have tightened and you may find yourself needing a higher credit score to obtain a loan. If you start the process early, it will give your lender time to work up a homebuying analysis which given time to work through could save you thousands over the life of your loan.
- Be ready for Volatility in rates – Be aware that with the volatility in the markets rates are changing multiple times per day. While we used to see rates change once or twice in a day, we are now seeing rates change sometimes 10-20 times per day. You can’t lock your rate in until you get a house under contract, so trust that your Real Estate Team will get you in touch with a reputable lender to help with your financing. A good lender should be able to help you by preparing a Total Cost Analysis to show you several options that will fit your short and long term financial plans and goals. Also, we’ve found that rate isn’t everything. There are some programs with slightly higher rates that may be a better financial option than a program with just the lower rate.
- Embrace Technology – Some of us are very technically inclined and some of us aren’t. From the initial pre-approval consultation, to signing disclosures and gathering documentation needed to finalize your loan approval; We used to be able to meet face to face and sign documents in person. With the pandemic we’ve all been forced to embrace technology more than ever before. I know I’m looking at this as a change for the better for myself as I’m forced to be more technical than I’ve been comfortable with in the past. Be ready to engage in technology in regard to online meetings, sending documents remotely and signing loan and real estate documents electronically.
- Be prepared to be more involved in the loan process – Federal guidelines are constantly changing, so be prepared that more documentation may be needed for your lender to get you approved. Lenders still have to verify your employment in the beginning of the process as well as the very end. With companies being closed or working remotely, you may be asked to help in obtaining contact information to verify your work status.
Special thanks to Rick Pilger and Chris Britton of Union Home Mortgage for these buyer tips!