Buying a home is an exciting and daunting task. You are making one of the most significant long term investments available and also a commitment that will last for decades.
These are the basics and some insider tips to make the entire process as efficient and stress-free as possible.
How to Choose a Mortgage Lender
Taking out a loan for 15 or 30 years is one of the biggest financial decisions you will ever make. So it is essential to do some research to choose the right lender.
Ways of finding a mortgage lender
Big banks- the old fashioned but less efficient way to finance a home.
Mortgage broker– will shop your loan for you to several lenders.
‘Discount’ financing– from a fly by night online company.
Real estate agents– may refer you to their favorite lender or say they have an ‘in-house lender.’
Independent mortgage loan company- can handle the entire process efficiently.
Why Choose an Independent Mortgage Company?
An independent mortgage company can handle the entire process from beginning to end.
- Decide whether to approve a loan, the rate, and the length of the term.
- Close the loan and get all the documents signed.
- Fund the loan to either buy the house or pay off an existing loan.
- Process the payments and service the loan.
- Approve additional loans or refinance in the future.
You will talk to the lender without having to go through a broker or a middle-man.
When you use a broker, there is always a chance that they will guide you to the loan that pays them the best commission, rather than the loan that fits your requirements. The process is all internal, so there is no conflict of interest on the commission.
Your loan originator will originate, process, and help approve your loan. The loan originator is the person who you need to be able to trust to tell you the correct information about your options.
Envoy Mortgage is an independent mortgage company that has been around since 1997. Envoy mortgage has a license in 49 states, and they have local branches across the country.
Getting the right person to work with is the most critical factor. Envoy was listed as one of the top companies to work for by Mortgage Executive magazine, National Mortgage Professional, and by Housing Wire.
This matters because if they can attract the best employees, you can avoid the problems of having your loan handled by an inexperienced or dishonest person.
What Type of Loans does Envoy Mortgage Offer?
There are countless mortgage loan programs, and they change and evolve. Using Envoy Mortgage will give you access to a wide variety of loan programs and a licensed mortgage loan specialist who can help you determine which to choose.
Fixed-rate– This is a loan that allows the buyer to lock in their current rate through the life of the loan. The loan will be insulated from swings in the market.
Adjustable-rate– This loan begins with a set interest rate, but once that initial period has passed, the rates will vary.
FHA Loans– Insured by the Federal Housing Administration and require mortgage insurance. You may be able to qualify with less money down or with less than perfect credit.
Jumbo Loan– This loan is for a home that is priced higher than the limits set by Fannie Mae or Freddie Mac.
Renovation Loan– This loan bases the home value on what the house will be worth after having some repairs or renovations done.
USDA Loan- Loans for homes in rural developments.
VA Loan– Loan option available to American Veterans and their families. No PMI or down payment is required.
Non-Agency Loan– Flexible loan solutions to buyers who don’t meet the rules for conventional loans.
Loans for Refinancing Your Home
A refinance is a loan that pays off your existing mortgage. This is often done to take advantage of lower rates than your current loan. You can borrow additional money to pay off other debts or expenses like credit cards, car payments, college tuition, medical bills.
Cash-Out Refinance– This loan option will increase the balance on the previous loan by cashing out on some of the equity on their home.
Rate and Term Refinance– This option will change the rate and term of your loan. When lower rates are available, it is possible to lower monthly payments or to shorten the term of the loan and pay it off sooner.
How to Get Started
It is easy to start the process on a mortgage. Whether you have your dream home picked out or want to get some ballpark figures from a qualified and trusted expert, here is what to expect with your home buying experience.
Contact a Loan Originator
Be prepared to discuss your credit history and income. Have a list of all your other loans and debts with exact monthly payment amounts.
Envoy will take a general overview of your finances and issue a letter with an amount that you are pre-qualified.
Applying for a Loan
At this point, you will provide proof of income, bank statements, employment history, and any other documents to complete a loan application.
Processing the Application
The processing department will verify the information you’ve provided, review your credit, and get the home and title checked out.
Underwriting the Loan
Once the loan is approved, underwriters will make sure the loan conforms to company and industry standards.
You will be approved for a set amount, and you will be ready to sign documents and take ownership of your new home!
You have worked hard, sacrificed, and saved to be in a position to own your own home. You will find that you treat your home not only as a great investment but as a member of the family. You can start by taking care to choose the right person to help you through the process. At Envoy Mortgage, that person is ready for you today.