An Experienced Mortgage Lender Can Make a Big Difference
Rate is the most important thing in the world when buying a home, right? For many, the answer is yes, but they couldn’t be more off target when it comes to where focus should be on buying a home. Rate IS important, but probably not as important as a monthly budget, hitting numbers that are comfortable, and (perhaps most importantly) getting the right house to begin with.
Many people have loan issues and some estimates put the ‘fallout rate’ (the rate at which a home doesn’t make it to settlement due to issues along the way) for financed home offers as high as 30-something percent. But once you ‘get’ the home, an experienced lender can continue to pay dividends.
In issues where experienced and skilled listing agents try to improve their client’s bargaining power a great lender will know how to protect their buyer’s information and improve their chances of getting a good deal on a new home.
Much of mortgage advertising focuses on rate, but not enough emphasis is placed on the experience of the lender. A lender just issuing bargain-bottom rates may not have the experience to seek out potentially better products. For example, most people don’t realize that a lower amount used for a down payment can be more financially prudent than a lower rate/mortgage payment – especially for families with other debts at higher or variable (or both!) rates.
Your experienced lender (like you’ll work with on the JM Loans team) will seek out the best products, ask the right questions, and determine which route is truly going to benefit you the most short- and long-term. Sometimes, rate WILL be the most important feature of your loan, but more often than not, it’s structuring a loan that matches a client’s financial goals, and fits both their current plans and plans for the future (because remember, every time you change your mortgage through a refinance, it can cost thousands in closing costs. Getting the right mortgage on day 1 is far more important than rate for most people, and you’ll only get the right mortgage by working with an experienced team!