Purchase
Real Estate purchases are complex transactions involving significant sums of money and requiring the active participation of various professionals. The mortgage lender, the credit reporting agency, the property appraiser, the surveyor, property tax authorities, insurance professionals, the Realtor, attorneys and a title company – each of these professionals provides an important contribution to the process. Real property laws are much more specific and involved than are the laws governing the conveyance and financing of personal (or chattel) property.
In financing the purchase of real estate it is not true that one size fits all! Though one factor is common to all loan applications – everyone wants the best rate available for their transaction - not all transactions are the same. In fact, every application has unique characteristics. Loan applications are therefore underwritten and priced individually because no two are exactly the same. Differences in income, employment stability, the prospect for future upward mobility, present and past credit history, the amount of other debt that is owed, the amount and source of money that the buyer intends to invest in the purchase – each of these, as well as numerous other factors, affects what type of financing instrument should be used and how the loan will be priced. The answer to that all important question – what is the best rate available for your transaction - will depend as well on what your goals are. You are interested in the lowest rate you can get but does that mean for a shorter period of time – say three, five or seven years? Or are you willing to pay a slightly higher rate in order to guarantee that rate for say fifteen, twenty or even the next thirty years? Are you willing to make a larger investment up front and/or pay a larger monthly payment in order to get a lower rate? Or are you willing to pay a slightly higher periodic rate if you can eliminate most of your out of pocket expenses at closing? Some of these goals are compatible with each other and some of them are in conflict with each other. One of your mortgage professional’s primary tasks is to help you identify your priorities in the financing of your purchase and help you find what is truly the best rate for your transaction! One size does not fit all. The question "What is your rate" has no meaningful answer unless it is tailored to your specific goals, circumstances and history. It is your mortgage professional’s job to offer you a rate that is competitive given your unique application. Because the availability of financing tends to be the dominant factor in many real estate transactions your mortgage professional is a central player in this very important transaction. That is why only seasoned, experienced professionals are allowed to work at Neighborhood Mortgage Center. It is also why many potential home buyers prefer to get pre-approved for a mortgage before they shop for their new home. They understand that being pre-approved for a mortgage usually means that your offer to purchase carries more weight than an offer from someone who has not yet been approved. You may know that you are as good as gold but a seller doesn’t know that unless you have been approved by a mortgage company. Your real estate purchase is one of the most important legal and financial commitments you will ever make and you deserve more than a telemarketer with limited knowledge of and experience in real estate transactions.
To contact Preston Dumas: pdumas@nmcltd.com
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