Smart Steps to Getting a Mortgage

Looking for the ideal home is the fun part of homebuying, but all of the research and paperwork to get a mortgage is less enjoyable. Still, understanding all aspects of the mortgage process is important. We’ve previously discussed some of the early steps you should take to prepare for a mortgage and now we’ll cover a few more of the final details to understand as you move toward owning one of the homes in Montgomery County PA.

Your next big step is choosing the lender that offers the right mortgage for you. While we work with trusted lenders like UniVest Home Loans and US Bank, we know that you’ll want to check with other reliable lenders. Reliable and trusted are key words to keep in mind. You want to work with licensed mortgage professionals, such as members of the National Association of Mortgage Brokers.

When meeting with any potential lender, ask questions, take notes, and even consider recording the conversation to make sure you understand everything. If you have questions in the moment, ask them until they provide an answer that you understand. If you think back and have questions later, they should still be willing to answer. Mortgages shouldn’t require a mathematics degree and your lender should be willing to answer all of your questions about numbers and terminology. The old adage of “if something seems too good to be true” is definitely worth considering, especially if there is talk of up-front fees and charges.

Make sure you understand the various types of loans, such as adjustable rates, and interest-only mortgages. They may seem good at first, but look at what they mean in the bigger picture, as loans are usually for decades, not a year or two. Fixed-rate mortgages may be higher at first, but could be more secure over the lifetime of your mortgage, unless you want to go through the trouble of refinancing process at some future point.

Understanding your mortgage principal and rates is also important if you want to have the option of paying down the principal of your mortgage sooner with extra payments or higher payments than required. However, be careful if a lender offers you a chance to lower some payments or skip payments, because that rarely helps you pay down your principal, ultimately costing you more money in the long run. Your goal should be to pay down the principal as early as possible or at least stay on track with your agreed-upon mortgage loan and interest rate.

When looking for new homes in Montgomery County PA, and discussing mortgages with lenders, make sure you have a solid grasp on the process, the amount of house you can afford, and the typical vocabulary. Your agent and lender should be willing to explain and answer any questions and concerns, so always do your research and find a licensed and trusted agent, builder, and lender. You can start by contacting us today!


Meet Donna, Your Trusted New Home Advisor

As a helpful resource, Donna’s here for you. She knows all about the neighborhoods we build and can help guide you towards making the best decisions about your perfect W.B. home.