Tips for First Time Homebuyers

Being a first time home buyer can be terrifying. I’ve done it. I purchased my first home, well before I was involved in the mortgage business. I worked with a great agent and what turned out to be a not-so-great mortgage broker.

I learned a lot from that experience, and ultimately it led me to my career in mortgages. I’ve been helping first time buyers for over twenty years now, and here are a few of things I’ve learned that I hope will help you on your journey to home ownership.

  1. Work with someone local that you trust. If your agent referred you to the lender, that is a great start. Agents know that not all lenders are the same, and agents have seen closing fall apart at the last minute as a result of lackluster loan officers (LOs). Keep in mind that the call center LO with attractive rates has likely been in the business less than 6 months (industry average at most call centers) and may have never even closed a loan in your State. SC in particular has some unusual practices (for example, we are on of the last “attorney” states). And if it sounds like the person you are talking to doesn’t know their stuff, trust your gut.
  2. Make sure you understand what you are being offered. I have talked to literally thousands of clients that were pre-approved by another lender but were not told the terms of their loan, budget, monthly payment, interest rate, loan type, or given any options to consider. Our job is to educate and explain.
  3. Accessibility matters. Do you have the cell phone for your loan officer? Will they answer calls and emails after hours and weekends? You will have questions, and you should expect timely (and accurate) answers.
  4. Rate is NOT the only consideration. If a lender has quoted you a rate and nothing else, you don’t have the information you need. Is this is a fixed rate? What is the cost (points) to get the quoted rate. What additional fees does the lender charge? How much cash will you need at closing? Anyone can quote a super low rate, but there may be tens of thousands of fees associated with that option. Make sure you understand all of the factors involved, and if a lender won’t discuss this with you, find someone else.
  5. Ask questions. If you don’t understand something, don’t be ashamed. The average residential mortgage touches about 50 different people before funding. There are as LOT of moving pieces and even seasoned veterans are surprised at times. Raise your hand and ask questions when anything seems confusing.

I would love a chance to earn your business and show you what the Otter Mortgage Team “joy in lending” experience is all about. Just give me a call or shoot me a text at 843-557-3926. Yep, that’s my cell phone 🙂