“Our primary objective in every mortgage transaction should be to borrow in a way that reduces debt, improves financial stability, and helps us get debt free in as short a time as possible!” – Dale Vermillion
Purchasing a home is a part of the traditional progression in your life. As your personal circumstances change due to events like employment, marriage, and children, you will need to look at the different property types that will your suit different life stages.
For example, in your twenties, a studio apartment will more than likely be the correct property to buy, both from a size and financial perspective. Once you are ready to start a family, you should be interested in a home in the suburbs close to good schools and amenities.
As your family and your salary grow, you will be in the position to purchase a bigger home in a more upmarket residential area. Finally, as the pendulum swings towards retirement and your children leaving the nest to spread their wings, you will more than likely to be ready to consider downsizing.
The mortgage application process
The purpose of the discourse written above is to show that you will more than likely purchase up to four homes during your adult life, and you will need to apply for a mortgage to fund your purchase. Thus, the question that should be asked and answered is: “What is included in the mortgage application process, and by extension, the purchase of a new home?”
One of the most important aspects of this process what is known as “The Good Faith Estimate.” Investopedia.comdefines the Good Faith Estimate (GFE) as a standard document that “lists necessary information about the terms of a mortgage loan which the lender is offering.” Its sole function is to “enables a mortgage consumer to compare offers, understand the actual cost of the loan, and make an informed decision when choosing a loan provider.”
Choosing a mortgage broker
Based on the information mentioned above, here are some tips on how to choose the right mortgage broker:
Ask associates and friends for recommendations
Your friends, work colleagues, other home owners, as well as your real estate broker will all have had both good and bad experiences with the mortgage application process. Collecting and collating this information will help you choose the best mortgage company that will help you procure the best home loan package.
Conduct online research
With the advent of the Third Industrial Revolution and the Information Age, it is estimated that 63.5% of global users have access to the Internet via one or more mobile device, including smartphones and tablets. Furthermore, it is widely accepted that most Internet users access the World Wide Web via these mobile devices.
Therefore, it is acceptable to assume that there will be information on how to apply for a mortgage as well as valid reviews on all the different financial houses who offer mortgage loans.
Use the Good Faith Estimate
Even though this topic has been highlighted more than once in this content, it is such an important part of the home loan application process that it bears mentioning again. Furthermore, it is interesting to note at this juncture, that the GFE is a legal document and a mandatory part of the mortgage application process.
Therefore, in order to ensure that you receive a comprehensive GFE when applying for a home loan, it is vital to speak with a knowledgeable and competent Seattle mortgage broker. Otherwise, you will not be able to make an informed decision when deciding which home loan package to select.
We can conclude the following based on the evidence presented above:
- Because potential homeowners all have unique needs, it is important to choose a financial provider that will provide each applicant with the best package that will suit his/her individual requirements.
- Research, both online and word-of-mouth, forms an integral part of the mortgage application process.
- It is vital to ensure that the mortgage provider includes a Good Faith Estimate in the package presented.
Finally, it is crucial to remember that the decision to accept a mortgage offer to purchase a home is a major life event. Thus, it deserves the time, attention to ensure that the best and affordable offer is taken up.