Often your financing can be the difference between winning the contract or not!
Here's a perfect example:
You find the perfect home and we submit a contract only to find out there are two other contracts coming the same day, all for nearly the same price and closing dates. The first contract has financing by a mortgage broker the seller has never heard of. The second contract has strong financing but only 2% down payment and several contingencies. Your contract has 10% down payment and we completed a home inspection prior to writing the contract. Which contract do you think they are going to choose?
An experienced lender will be able to show the seller that you're a solid investment. They will write the strong lender letter that is submitted with the contract and they will talk with the seller's realtor to support that you are a strong buyer. Their reputation as a banker is also key in winning the contract. The seller is assured by their reputation that they will have the paperwork and funds ready for settlement.
The lender will start the pre-approval process even before we start to look at the first home. They will run your credit report and determine any issues that need to be resolved. You can address potential problems upfront, such as income qualification, issues with credit scores, or the securing of necessary documentation so that you can get the best loan. They will also be able to give you price range and a good faith estimate on how much your monthly mortgage payments will be as well as estimated funds for you to close.
The right lender gets you the right loan and completes their paperwork in great detail in advance and that means your offer is more likely to be the winning offer!
There are a multitude of Down Payment Assistance (DPA) Options and not every lender is knowledgeable about all the options! Programs can be used to reduce your down payment amount and/or your closing costs and several of these programs can be layered together for maximum savings (restrictions apply).
FHA: 31% of millennials chose this loan type between July and September 2017, and for good reason! With a minimum down payment amount of only 3.5%, a minimum credit score requirement of 620*, and the ability to use it alongside additional down payment assistance programs, FHA loans are flexible, affordable, and straightforward.
VA & USDA: We all know that these programs can provide 100% financing to those that qualify, but did you also know that both of these loan types can be combined with our Heroes First program to give additional discounts to our community heroes?
Conventional Loans: Great for buyers with good credit scores, programs like HomeReady and HomePossible allow only 3% down payment. Like FHA loans, they can also be combined with additional DPA programs.