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| Charles Swigart |
But if you don't pay attention to the details, your mortgage can end up dragging down the enjoyment of your new home and cause some major regrets. I’ve asked Chuck Swigart, an independent mortgage broker to help answer some of the common questions that buyers ask:
· Is a mortgage broker the same as a mortgage lender? No. Mortgage lenders offer only a few select loans marketed to the most common borrower characteristics. Charles Swigart Home Loans is an independent mortgage broker. We offer well-known conventional, FHA, and VA home loans. We also offer the not-so-well-known home loans such as our rare 1% down conventional purchase loan. We also offer non-conventional loans for special circumstances such as self-employed, investment income, and foreign national. We offer the same loans as all mortgage lenders but we can provide it with a more competitive rate.
When you shop for a car, you typically go to a dealer that sells one type of car. You can buy any of their vehicles in that brand. Now, imagine going to a dealer where you can buy any brand of car and any model offered by that brand. Having all brands and all models in one place is how convenient it is to shop for your home loan with a mortgage broker.
· What is a common misconception about mortgage lending? All lenders are the same. Not true. While many lenders and brokers may offer similar loan products, the service you receive may be vastly different. Differences in service from a lender or broker may be due to differing experience levels or differences in the company’s behaviors. Charles Swigart Home Loans’ primary behaviors focus on speed and service to our clients.
· What does a lender look for when qualifying applicants? Primarily, we look for demonstrated credit responsibility and consistency. This doesn’t always mean high credit scores and salaried borrowers. The lack of risky credit behavior is more important than a high credit score. Having two (2) years of employment and residence history is important. Two (2) years of employment in the same industry with more than one employer or two (2) years in the same position with multiple employers is acceptable.
· What is available to help buyers with a limited amount of money for the down payment? We offer our unique 1% down payment option for borrowers with 700+ credit scores. We also provide down payment grants and purchase money loans for borrowers that want a little more help. If you have your earnest money deposit and $1000 for appraisal and home inspections, you may be ready to buy your next home.
· What do you recommend for someone with credit issues? We provide a free, 10-minute loan qualification for our clients. We can answer your questions about your challenges and put your mind at ease. Most of the issues you worry may keep you from homeownership can be resolved with a simple phone call and an action plan. Let us put our experience and skill to work for you.
· People that are self-employed may not qualify if they claim many deductions on their taxes so they don’t show enough income. What can they do? If you have 20% down payment or 20% equity in the property you own, you can qualify using your bank statements to prove income. If you don’t have 20% for a down payment or equity, you should consult your accountant. We can also finance borrowers that can show their income from the cash flow of investment properties – even if they deduct all of their income.
Thank you, Chuck. Where can people reach you if they have more questions? You can reach me any day of the week at 303-868-6071. Don’t be afraid to call and get advice. It’s free and can lead to positive opportunities for your future!
Finally, from a Realtor’s point of view, here are a couple of mistakes to avoid to ensure that you love your mortgage terms as much as your new home.
Don't find your home first: Shopping around for the best mortgage rate should be the first step in the home buying process. You may even want to talk to a mortgage broker a full year before you plan to buy. It'll give you time to get your affairs in order to qualify for the best rate, could save you thousands of dollars in the long run, and you won't feel rushed to accept an unattractive loan because you're worried you'll miss out on your dream home.
Don't forget your real budget: There's often a big difference between what a lender says you can afford and what you can actually afford. Your debt-to-income ratio doesn't include the money you spend on hobbies, or the cost of commuting to work, or maintenance and utility costs. Really sit down and examine your spending before committing to the loan amount the lender is offering. You won't enjoy your home nearly as much if it's eating into your favorite hobbies.
When you shop for a car, you typically go to a dealer that sells one type of car. You can buy any of their vehicles in that brand. Now, imagine going to a dealer where you can buy any brand of car and any model offered by that brand. Having all brands and all models in one place is how convenient it is to shop for your home loan with a mortgage broker.
· What is a common misconception about mortgage lending? All lenders are the same. Not true. While many lenders and brokers may offer similar loan products, the service you receive may be vastly different. Differences in service from a lender or broker may be due to differing experience levels or differences in the company’s behaviors. Charles Swigart Home Loans’ primary behaviors focus on speed and service to our clients.
· What does a lender look for when qualifying applicants? Primarily, we look for demonstrated credit responsibility and consistency. This doesn’t always mean high credit scores and salaried borrowers. The lack of risky credit behavior is more important than a high credit score. Having two (2) years of employment and residence history is important. Two (2) years of employment in the same industry with more than one employer or two (2) years in the same position with multiple employers is acceptable.
· What is available to help buyers with a limited amount of money for the down payment? We offer our unique 1% down payment option for borrowers with 700+ credit scores. We also provide down payment grants and purchase money loans for borrowers that want a little more help. If you have your earnest money deposit and $1000 for appraisal and home inspections, you may be ready to buy your next home.
· What do you recommend for someone with credit issues? We provide a free, 10-minute loan qualification for our clients. We can answer your questions about your challenges and put your mind at ease. Most of the issues you worry may keep you from homeownership can be resolved with a simple phone call and an action plan. Let us put our experience and skill to work for you.
· People that are self-employed may not qualify if they claim many deductions on their taxes so they don’t show enough income. What can they do? If you have 20% down payment or 20% equity in the property you own, you can qualify using your bank statements to prove income. If you don’t have 20% for a down payment or equity, you should consult your accountant. We can also finance borrowers that can show their income from the cash flow of investment properties – even if they deduct all of their income.
Thank you, Chuck. Where can people reach you if they have more questions? You can reach me any day of the week at 303-868-6071. Don’t be afraid to call and get advice. It’s free and can lead to positive opportunities for your future!
Finally, from a Realtor’s point of view, here are a couple of mistakes to avoid to ensure that you love your mortgage terms as much as your new home.
Don't find your home first: Shopping around for the best mortgage rate should be the first step in the home buying process. You may even want to talk to a mortgage broker a full year before you plan to buy. It'll give you time to get your affairs in order to qualify for the best rate, could save you thousands of dollars in the long run, and you won't feel rushed to accept an unattractive loan because you're worried you'll miss out on your dream home.
Don't forget your real budget: There's often a big difference between what a lender says you can afford and what you can actually afford. Your debt-to-income ratio doesn't include the money you spend on hobbies, or the cost of commuting to work, or maintenance and utility costs. Really sit down and examine your spending before committing to the loan amount the lender is offering. You won't enjoy your home nearly as much if it's eating into your favorite hobbies.
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