We recently had the opportunity to sit down with mortgage banker, Heather Raney of the Atlantic Bay Mortgage Group. Heather is a long time Greenville resident and has been in mortgage banking for over a decade in the community. Heather can assist with your home loan needs. She strives to make the home lending process as smooth as possible. We had the opportunity to pick Heather’s brain about the home loan process. We asked Heather what she recommends as the first step to buying a home: Call your Lender - This will help you determine the amount for which you qualify.
Heather recommends gathering your documents early and providing them to your lender. If your situation is complex, be sure to talk through it with your lender. Do not withhold any information from your lender. This will only slow down the loan process and could cause you to get false hope regarding the amount you can borrow.
Even though interest rates have risen over the past several months, it is still a good time to buy. Heather words it beautifully, “Do what’s right for you when it is right for you to do it.” We can not predict the variable in home buying, and one variable may not be right at another time. Rates can cause a big swing in what you afford. Talking to a lender early will help you see what your max budget is at different rates. You might be able to afford a $200,000 mortgage at a 5% interest rate. With a cushion in your budget may still be able to afford $200,000 at 6%. If you do not have a cushion, you might need to reduce your budget. You cannot change the rate, but you must do what is right for you. Rent is a variable you cannot control and does not allow you to build equity.
Buying at a higher rate does not affect your options to refinance to a lower rate in the future. Refinancing to a lower rate can reduce the length of your loan or your monthly payment. Some people even take out additional equity to cover home projects if needed. Refinancing is not a one size fits all, but do not let rates scare you from buying a home. You have options!
Get started now! Homes are selling fast and there is still a scarcity of inventory. Get started 3 months prior to when you think you are wanting to buy. This will allow you to be prepared on the lending side so you have no barrier when you find the perfect home.
Heather wraps us up with her 3 biggest pieces of advice:
- Savings: Be sure to have at least 5% of the home purchase price in documented money.
- Check your credit score and report. Use your free credit report.
a. What is your score? Know what is on your credit. - Start talking to a lender that you trust. Make sure they are able to help you understand the process.
We cannot thank Heather enough for taking the time to chat with us and help guide us to a smooth loan process. Please give Heather or Global View Investment Advisors a call with any questions. We would be happy to assist you.
