What Mortage Lenders Can Do for You as a Homebuyer in New York
Your mortgage is a big part of the process of buying a house. It’s like a journey, where your destination is a new home. But like every journey, the road to buying a house is different for everyone. When it comes to the journey of our mortgage, you need the help of a guide.
You need to find a mortgage lender.
And not just any mortgage lender, but a good, reputable lender you can trust. Working with a lender will help you figure out the best steps to take on the journey to purchasing your new home. A good lender will be able to assess your situation and guide you toward the right mortgage option for you. For homebuyers, working with a mortgage lender is the easiest way to a smooth and hassle-free property purchase.
But what do mortgage lenders do?
If you’re still wondering what mortgage lenders can do for you, here’s what you need to know:
Mortgage lenders can help you figure out the best type of loan for you.
Like we said earlier, a good mortgage lender is one that is able to assess your situation and guide you toward the right mortgage option for you. When it comes to loan type, working with a mortgage lender will help you figure out the kind of mortgage that you need.
Be sure to find a mortgage lender who takes the time to explain various loan types and how they might apply to you.
Could you possibly qualify for a fixed-rate mortgage, with a fixed interest rate for the length of the mortgage?
Or, would an adjustable-rate mortgage suit you better, with an interest that varies throughout its duration?
These are the two basic types of mortgages, and the right lender will be able to point you to the right one for you. Once you have an idea of what type of loan suits you best, mortgage lenders can even assist you on the next step.
Mortgage lenders can provide you with estimated loan costs and help assess your financial situation.
Any borrower is entitled to a detailed cost assessment from a mortgage lender. Mortgage lending in New York follows Consumer Financial Protection Bureau rules, which state that a mortgage lender is required to provide you with the estimated cost of your mortgage loan and the fees involved.
A reputable mortgage lender will ask you to provide information in order to accurately assess your financial situation and offer you the closest precise estimate. You might be asked to provide the following:
- Social Security number
- Income
- Property address
- Appraisal
- Loan amount requested
Once a mortgage lender provides you with the loan estimate, be sure to note that it also includes:
- Mortgage interest rate
- Annual percentage rate
- Costs of closing
- Taxes
- Insurance
- Estimated monthly payment
The mortgage interest rate and annual percentage rate (APR) are the most important things to take note of in an estimate. Your interest rate is determined by a number of factors that your mortgage lender should be able to explain in relation to the rate you receive. The APR is determined by the mortgage rate and fees charged by the lender, and is a great insight into the loan’s potential full cost.
Having an estimate will help you decide if this loan is the right option for you. If an estimate might not be affordable, a good lender can lead you to other available options. Be sure to work with a mortgage lender who is willing to guide you through each aspect of your loan.
Mortgage lenders can assist you with the preapproval process.
After receiving an estimate and determining whether a loan is financially fit for you, the next step is to apply for mortgage preapproval.
Applying for mortgage preapproval is highly recommended, as it is a clear sign to sellers that you are committed to purchasing a property, and it gives you a verified, accurate figure on your mortgage loan.
Mortgage lending in New York requires you to submit documents such as tax returns, bank statements, and your W-2s to your lender in order for them to accurately determine your loan figure.
This differs from an estimate in that it offers you a verified figure you can present to sellers whose property you might want to purchase. It also gives you a clear assessment of your finances backed by your official documents. If you have any issues regarding your credit or other qualifications for preapproval, a lender can offer you suggestions or advice that can help you get approved.
Here’s another thing lenders can assist you with.
Mortgage lenders can help set you up with down-payment assistance.
A good lender can help set you up with down-payment assistance if your finances are in need of a boost. A lender should be able to assess your eligibility for down-payment assistance programs and help you figure out which knees you can apply for.
For example, if you’re a first-time homebuyer, be sure to find a mortgage lender that can help you apply for assistance with the Federal Housing Administration.
Ultimately, it’s important to keep in mind that the lender you work with should be able to provide you with mortgage options that align with your short-term and long-term goals. A lender who can take your situation into account and find alternatives for you is the right guide for your mortgage journey.
Get in touch with us for your agent needs!
Procopio Team at Hunt Real Estate is here to help you find a mortgage lender that can work with you and offer you the best possible options for when you purchase your next property.
If you’re interested in this, or are looking to put a property up for sale, we’d love to be of assistance. Contact us at 315-350-0571 to get started.