When buying a home, working with a loan officer may be optional, but it is a good idea. Loan officers are available to help clients from the decision to buy a home until the closing, and can even provide some help after the buyer closes on their new home. Some of the ways a loan officer can help include the following.
Translation of Terms
Without an in-depth knowledge of loan terms, it’s difficult to understand everything. Buyers must know what they’re agreeing to when they obtain a home loan. A loan officer knows all of the terms and can act as a translator, explaining everything in plain terms so the buyer knows what everything means before they sign on the dotted line.
Sellers know that buyers are more serious about the purchase when a buyer uses a reputable loan officer. Sellers want everything to go as smoothly as possible, so they’re more likely to accept an offer from a buyer with a loan officer. If the buyer is working with a loan officer, there is already pre-approval for the loan and there will be fewer potential issues before closing, which are just a few of the things that can help make the buyer look good to the seller.
Close on Home Faster
Closing on a home can take a while, in part because of the need for final approval from the lender. With a loan officer helping, it’s possible to close on the home faster, letting the buyer move in sooner. The loan officer can explain everything about the closing, as well, so the buyer knows what to expect. This allows the buyer to get information on what is needed at closing and to make sure everything is ready well in advance so the closing doesn’t need to be pushed back for any reason.
Tips to Boost Credit Score
Before looking at homes, it may be necessary to look into getting a better credit score to have a lower interest rate for the mortgage. Even a little bit of an increase in the credit score can reduce the interest and a small reduction in interest can lead to thousands of dollars saved over the life of the mortgage. A loan officer can provide tips to help the buyer boost their credit score and prevent possible issues that could end up making it more difficult to obtain a mortgage.
Answers About Down Payments
Loan officers know what is needed for a down payment and how the amount of the down payment can impact the loan obtained as well as the potential for the buyer to get their dream home. They can recommend a 20% down payment in some cases or help a buyer determine if a lower down payment is the better option for them. By working with a loan officer, the buyer can make sure they’re using the right amount of money for the down payment on a home.
After the home is purchased, unforeseen events can put the home at risk if the buyer can’t make mortgage payments for some time. If the buyer ends up ill and out of work for a few months, loses their job, is in an accident, or otherwise can’t make payments, they could end up owing a lot of money. Receiving information from the lender about catching up before foreclosure is started can be crucial. This isn’t the time to panic. Instead, it’s time to call the loan officer and get help. A loan officer can provide the buyer with important information and assistance to help prevent a foreclosure from happening.
Avoid Scams or Bad Decisions
For first-time buyers especially, it’s all too easy to fall victim to a scam or end up making serious mistakes that could compromise the ability to purchase the home. For instance, first-time buyers will often open a new credit card or buy a vehicle once they’re approved for a loan. Then, their credit score drops, so they don’t get the final approval before closing and lose out on the home. Loan officers know all of the common scams as well as pitfalls buyers could fall into, so they can help buyers avoid any potential issues during the buying process.
Are you ready to buy a home? If you’re not working with a loan officer, you might not be as ready as you think. Loan officers will work with you from the beginning of the buying process to the end, and beyond. Contact Fellowship Home Loans today to learn more about how we can help you.