Finding the Best Loan Officer

Buying a home involves a lot of players on your real estate team, and a loan officer is one of them. Unfortunately, in the mortgage industry, it only takes one bad loan officer to mess up a deal. The loan officer is the front person for a mortgage company. You will interact through them through the entire loan process, so it makes sense to get the best loan officer you can find.

Good loan officers have been in the real estate business for many years. They rely on repeat business, and one way to do this is to establish a good long-term relationship with a realtor. In fact, one of the best ways to find a good loan officer is by asking a realtor for a referral.

It’s up to you to find the best loan officer when buying a home or refinancing a current mortgage. The following information should help you to find a skilled and qualified loan officer:

Qualities of a good loan officer

·         They look out for clients’ best interests before their own.

·         They are professional.

·         They are helpful in answering your questions about the home buying/refinancing process.

·         They have excellent salesmanship skills.

·         They can effectively communicate.

·         They are friendly.

·         They are good with numbers.

As stated earlier, loan officers are the front people for mortgage companies. There are no education requirements and you don’t need a degree to become a loan officer. There is a required test and annual certification process, and a loan officer must meet the state licensing requirements. Other than those things, almost anyone can be a loan officer. A loan officer needs salesmanship skills as well as the ability to effectively communicate. It’s also helpful if they have a good grasp with numbers.

Questions to ask your loan officer

·         How long have you been in the business?

·         What is your availability?

·         What lenders do you use?

·         How much money will you make off of my loan?

·         What are the lender closing costs?

·         What is the APR and interest rate for this loan?

·         What is the rate lock policy?

In the midst of selecting a loan officer, consider the advantages of knowing the true value of a home. Be sure to obtain a free home valuation report from Neighborhood IQ to find out how much a property is worth before you buy. Or if you are refinancing, it helps to know the value of your home.

The Home Loan Advisor can analyze your property, current market conditions, local market comps, and other variables in our proprietary algorithm, but we match you with potential lenders who have products that may help you and provide you with a sense of stability.

When to Refinance Your Mortgage

Refinancing has the potential to turn out to be one of the best financial decisions you have ever made if it shortens the term of your loan, reduces your mortgage payment, or assists you in building more equity in a quicker fashion. Refinancing can also help to get your debt under control when managed correctly. With all of the benefits that refinancing has to offer, it makes sense to use it as a valuable tool.

What many people don’t consider carefully is when they should refinance. Just because mortgage rates are low at a specific time doesn’t mean that it is a good idea for every homeowner. You should first think about your reasons for refinancing. After you have clarified the reasons, the next thing you need to consider is if the timing and circumstances are right. While there is no “perfect” time to refinance, there are better times than others. One of the most important things to be sure of is whether or not you plan on remaining in the house for many years to come. Otherwise, refinancing doesn’t make sense.

Consider these situations that make refinancing a good idea now: 

Your credit score has improved. Your current mortgage rate was determined by many factors, including your credit score at the time. It can be a great idea to refinance if your current credit score has improved a great deal. Credit scores that were considered to be average many years ago may be regarded as high now. This means that you can get a better rate. It is wise to keep track of your credit score closely while making your decision to refinance.

Interest rates are low. Naturally, this is one of the most predominant reasons to refinance your mortgage. Many lenders agree that a savings of 1% is incentive enough to refinance. Lowering your interest rate can help you to save money, build equity in your home, and decrease your monthly mortgage payment. Keep in mind that refinancing multiple times simply to get a lower mortgage rate may lower your overall financial benefit because you will be paying multiple closing costs. The last thing you want to do is leave a trail of closing costs behind you with every refinance. 

You want to change your adjustable-rate mortgage to a fixed-rate. When your ARM rate increases and is higher than a fixed-rate mortgage, it makes sense to convert in order to lower your interest rate and remove the possibility of an interest rate hike in the future.

You are able to pay more every month. If you don’t have a strong need to lower your monthly payment, you can refinance to a loan with a shorter term. Yes, you will pay more every month, but you will also own your home a lot sooner and pay less interest overall.

You need to cover a big expense. Paying for your children’s college or remodeling your home may be reasons to refinance, although this is not highly recommended for most homeowners. Before you add years to your mortgage to pay for these expenses, make sure that the reasons justify refinancing.

Remember that a smart homeowner is always looking for ways to reduce debt, build equity, save money and eliminate their monthly mortgage payment. Considergetting a free home valuation report from Neighborhood IQ to find out yourhome’s worth to aid you in the decision of whether or not to refinance, andwhen.

Thinking about Refinancing? Here are Reasons Why It’s a Good Idea

Like many homeowners, you probably want a lower interest rate and a shorter mortgage. If you are considering refinancing your mortgage, it can take a lot of effort and time to begin the process. While there are some not-so-pleasing aspects of refinancing, it can be a good financial move if your mortgage payment is lowered.

Under the right conditions, refinancing your home can certainly benefit you in the long run. It all depends on your particular financial goals. Let’s take a look at some of the reasons why refinancing is a good idea:

You can get a lower interest rate. Since interest rates are at a record low right now, you can get 30-year and 15-year mortgage rates far below 5%. This is one of the best incentives to refinance because it not only lessens your monthly payment; it also allows you to build equity in your home quicker. You can save thousands of dollars in interest by refinancing, and you can pay off your mortgage debt faster. According to lending companies, reducing your interest rate by 1% is an incentive to refinance.

You can shorten the term of your loan. If you switch from a 30-year mortgage to a 15-year mortgage, the shorter loan can fit into your budget. Your monthly payment may only increase by a few hundred at the most, and this may be a feasible option for your household. You can use a mortgage calculator to estimate your new payment.

You can lower your monthly payment. If your goal is to have an extra couple of hundred dollars every month for savings, investments or vacations, refinancing at a lower interest rate can accomplish this. You can also save a great deal of money in interest. Keep in mind that lowering your monthly payment can add years to the term of your loan, but it can be extremely helpful.

You can get a fixed-rate loan. Your adjustable-rate mortgage can be refinanced for a lower interest rate, and you can lock into this rate for years to come. You can also plan a fixed payment with more ease every month.

You can cash out your home equity. This can be a savvy move in certain instances. You may want to cash your home equity to invest and start a business. Or you may simply want some money to pay for other expenses or manage debt.

You should also take into consideration the fact that refinancing involves closing costs and other fees. It may cost thousands for a new mortgage, but only you can determine if the costs of refinancing is worth it in the long run. Also, if you are considering moving anytime in the next few years, refinancing will probably not be the best option.

Refinancing means that you need to know the value of your home. You can get a free home valuation report from Neighborhood IQ by clicking here to find out your home’s worth to help you decide if refinancing is a good way to go. It is important to weigh the pros and cons of your unique situation. With careful planning along with knowing the value of your home, refinancing could turn out to be one of the best financial decisions you have ever made as a homeowner.