So you’ve been out with your Indianapolis REALTOR® for a while now looking at Indianapolis homes for sale. You probably feel like you have traveled most of the state of Indiana so far trying to find the home of your dreams. Then suddenly, you found it, just the right Indianapolis home for you and in your price range. Now what?
You’re new at this whole home buying thing so you have been taking the lead from the Indianapolis real estate professional working with you. Now that you have found the right home, you want to make sure you find the right mortgage. You know some things about securing a mortgage but after that you get kind of lost. If you feel like you need someone to spell out the steps for you in finding the right loan for you, this is the place for you.
First of all, start with your REALTOR®. He can fill you in on some mortgage basics that can help you formulate additional questions for when you meet with a mortgage representative or potential lender. If you aren’t sure who to work with in securing a mortgage, ask your REALTOR® or friends who they recommend. You can also go to the lenders yourself.
When looking at working with a mortgage representative however, as with any other professional situation, you are essentially hiring this person to work with you. Call several representatives and feel them out. Ask them how many loans they have been able to get financed and how long they have worked in the business. Look at general personality traits too because you will need to be represented by someone who is able to get things done. The same is true for your REALTOR®. There are many things to negotiate in a real estate transaction so you are looking for a certain amount of finesse backed up by people who can produce results.
Okay, so you found your home, covered some basics in securing a mortgage with your REALTOR® and called a few mortgage representatives. Before you proceed any further, also tackle the following.
1. Make a good estimate of the amount of time you think you will live in your new home. If you truly think you will be itching to move in less than five years, you are perhaps a better candidate for an adjustable-rate mortgage. Anything past that and you will want to look at fixed-rate loans as they provide the most stability in changing market conditions.
2. Before making a decision where you will obtain your loan, do some mortgage rate shopping. This will require you to contact credit unions and banks, as well as the mortgage representatives you called, to ask them about what they can currently offer you. Try to make contact with five to six lenders so that you have a good amount of data to compare.
3. Once you have the data from these lenders, compare the final costs of each mortgage option from the individual companies to arrive at your best options. Compare items like closing costs, interest rates, points and fees.
Once you have this information, decide with whom you would like to move forward and start the rest of the application process.
It’s a good strategy to get pre-approved before making your offer as this makes your offer look more solid to a seller. Once you have chosen who to work with, this is usually easily provided to you and your REALTOR®.
Buying a home can be complicated but if you surround yourself with good people and gather background information about funding your loan, it can go rather smoothly.