Buying a home can be one of the most exciting times in your life - but it can also be one of the most stressful. For Brandy Hekker, loan officer at CMG Homes Loans, home ownership means creating community and stability for families. Every day, she works diligently to minimize tensions during the home loan process through open communication, careful attention to detail, and proactive problem-solving.
Drawing on more than 25 years of experience, Brandy provides insight and clear answers to the following frequently asked questions.
When should we apply for our loan?
Starting your pre-approval early is key. Most lenders will start with a “soft” credit pull. This doesn’t hit your credit score with a hard inquiry, but gives us a pictures of your credit so that we can run scenarios specific for you and look for areas that could be improved. Applying early gives time to work through any issues that might need attention before you're ready to make an offer and lock in your rate.
How much do I need for a down payment?
There are a wide range of loan programs to meet different needs, and it is important to find the option that best applies to you. This is another reason to start the application process early. It gives time to explore the best use of your funds as you move toward purchasing. There are programs available to help with down payment if you qualify, and some clients get into homes with very little cash out of pocket.
What is a buydown?
The most common is a permanent buydown, where you pay a percentage of the loan amount in points to lower your interest rate for the life of the loan. Another option is a temporary buydown, like a 1/1, 2/1, or 3/2/1. In this case, the seller prepays interest to lower your rate for the first few years, giving you a lower payment starting out that gradually increases. If you refinance during that time, any unused interest is credited back to you. This type of buydown would need to be negotiated in your purchase contract since it requires seller contribution.
When is it a good time to refinance?
Everyone’s situation is a little different. Your current loan type, balance, term, and how long you plan to stay in the home all play a role. It is preferable to make sure the cost of refinancing is recouped through monthly savings within a reasonable amount of time or your overall loan term is shortened. Moving to a shorter term 15- or 20-year term can result in significant interest savings.
How do I choose a lender?
Everyone is unique, but in any financial decision, having a trusting relationship with the person you’re working with is so important. Buying a home is one of the biggest transactions you’ll go through, and it can be stressful. Clear communication and setting expectations help everyone feel confident and at ease.
To connect with Brandy and have her expert help in navigating the home loan process, call or text 425-750-9528 and visit www.cmghomeloans.com.