So you’re ready to buy a home and get the title of owning a mortgage! So where do you start?
Meet Tracey Peffer of American California Financial, I actually met her through my AMAZING network referral group Pipeline BNI. Every Thursday morning we wake up super early and meet each other at 6:45 am to get our networking on. She is also the mom of Natalie, whose wedding I just photographed. You can go to their photos of their engagement session here. Plus I took her branding photos so why not share a little right?
Through BNI, I get to meet a ton of amazing, smart and talented people and Tracey is one of them. I figured since most of my clients are getting married or already married, getting a mortgage is a great topic for those looking to take the next step!
Thats right…You’re growing up!
Tracey started working part-time for one of the agents in the office she is in now. A year later, she was hired by owners of the company and the rest is history. She enjoys living by the beach getting a beach walk in whenever she can and spending time with my family. Her favorite part of her job is is when the loan closes of course!
Tracey always delivers exactly what she’s promised. Rates are lower than ever right now so you should definitely have Tracey take a look at that pesky credit score and see what you can do! For now, here are 10 tips to get started!
- Tell your loan Officer everything: I’ve had clients not tell me they were on an extended leave of absence or that they’ve opened a new credit card. Being transparent with your loan officer will avoid any problems.
2. Pre-qualified vs pre-approval: The meaning is very different. Pre-qualified is the first step in determining the loan amount you qualify for. Pre-approval means your income, credit and assets have been verified and you have lender approval.
3. Late Payments: It’s really important that you continue paying your mortgage until your loan officer tells you to stop.
4. Comparing the interest rate and APR: Interest rate is the cost of borrower the money. The APR includes all fees and other costs involved in the loan. A big spread between the two usually means high costs.
5. Save enough for the down payment: A bigger down payment means better interest rate and lower costs. Plus you will have a more affordable monthly mortgage payment
6. Don’t change your employment while your loan is in process: This could affect your loan approval especially if part of your income is based on bonuses. Or switching from W-2 to self-employed, you will need to show a two year history.
7. Season your funds to close: Lenders require bank statements to cover the most recent full two-month period of account activity so it’s best to keep your money in the bank.
8. Reviewing your credit score: Your middle credit score is one of the factors that determines your interest rate so make sure you know your credit score. Check out Credit Karma to get a jump in the process.
9. Lock in your rate: This is so crucial. I’ve heard so many times that people get to the end and then they find out the rate has changed. When you work with me, once you are ready to move forward, we lock in your rate.
10. Know the difference between a mortgage broker and a banker: As a mortgage broker my job is to find you the best rate and loan program to fit your needs. I can even help your fix your credit to get you the best rate. A banker has limited options.