NJ Mortgage Lender Tips

Purchasing a home is probably one of the biggest investments/purchases a person will ever make in their lifetime. If you’re buying your home, there is an enormous amount of complex issues that need to be considered. A qualified, reputable NJ mortgage lender can facilitate this process by offering some of the following tips.

Tips from a NJ Mortgage Lender Regarding Buying a Home

1. Looking for a home prior to being pre-approved: As a potential home buyer vying for a home in a competitive housing market, you’ll have a better chance of getting your offer accepted by being already pre-qualified – given you represent yourself as a prepared buyer.
   • Consider this as a seller when considering accepting an offer from a potential buyer.
     1. The buyer is not pre-qualified or pre-approved: This buyer provides no evidence that they can afford to purchase the property. This casts serious doubts in the mind of the seller with regards to.
     2. Buyer is pre-qualified: This buyer has met with a NJ mortgage lender and discussed their personal situation. The buyer has informed the NJ mortgage lender of their income, expenses, assets, and liabilities. The NJ mortgage lender may also have seen their credit report. As a result, the buyer can provide the seller a letter from the NJ mortgage lender stating an opinion of what the buyer can afford.
     3. Buyer is pre-approved: This buyer has completed the loan application, provided a NJ mortgage lender with written evidence of income, expenses, assets, liabilities and credit. All of this information would have been verified by the NJ mortgage lender. Therefore, much of the paperwork for this buyer’s loan has been completed. This buyer will subsequently be able to close quickly. They will also be able to present a pre-approval certificate from the NJ mortgage lender. It is almost an absolute certainty that this buyer can close.
2. Making a verbal agreement: If you’re asked to sign a document containing instructions contrary to your verbal agreements – don’t! For example, the seller verbally agrees to include the washing machine for sale, but the written purchase contract excludes it. Ultimately, the written contract will override the verbal contract. Do not expect oral agreements to be enforceable.
3. Choosing a NJ mortgage lender because they have the lowest rates: While it’s makes sense that this would factor in heavily to going with a specific NJ mortgage lender, it is equally important to consider the total cost of your loan including the APR, loan fees, discount and origination points. A below market or low interest rate quote may indicate some hidden loan requirements, like a prepayment penalty, requirement for escrow impounds, a 15 day rate lock or requiring a bigger down payment. Therefore, make sure the rate quoted is for your specific loan request.

The cost of the mortgage, however, should not be your only criteria for choosing a NJ mortgage lender. Select a reputable company which will deliver the loan promised. Insist on written pre-approval from the NJ mortgage lender. When in doubt, ask family and friends for referrals, and interview several prospective NJ mortgage lenders.