There’s not going to be any shortage of advice when it comes to getting a home loan. It’s pretty much everywhere once you start looking. Your friends who have recently bought and financed a home can certainly help. Note, the key word here is ‘recently’ as loan guidelines can change over time. Even individual lenders can add their own guidelines on top of what is already required. Having gone through the financing process under current conditions can provide potential buyers with good advice. Friends and associates is always a good place to start.
Another place for advice would be from your real estate agent. While not providing financing directly, they do work with lenders pretty much everyday. Agents can refer lenders to clients while lenders can do the same for agents. When an agent refers a lender, it’s not necessarily because that lender has the best programs. Most lenders have the same basic subset of loan programs.
Instead, agents like to refer lenders because they feel confident that the financing won’t get all caddywhompus right before the closing is scheduled to take place. Agents do a lot of work over an extended period of time and don’t get paid until the very end after the closing takes place. When an agent refers a lender to you, the agent feels confident that the deal will close and so should you.
Individual loan officers will provide you with the range of current loan choices, based upon your current situation. Here is where the advice gets to the nitty gritty. Most loans go the 30-year fixed rate route. It’s the most common and most competitive program around. Loan officers can consult with you to determine which programs are best for you. Not everyone is the same, right? What might be good for one person might not be the best fit for another. A loan officer can provide you with solid advice on what are the right suggestions for your personal situation. Understand however, a good loan officer should be able to provide you with enough advice and information in order for you to make a final decision.
The absolute best advice? The best advice is to be clear that it’s you that’s in the driver’s seat. Don’t feel like you have to move forward with any purchase. Just because you spoke with some lenders or even filled out a loan application, you’re under no obligation to move forward until you’re ready. The best advice is to move when you’re ready, and not under the suggestions of others.
