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What Mortgage Companies Should Tell Novice Home Buyers
When it comes to home financing, there are plenty of misconceptions that can confuse borrowers. If you work for a Kansas City mortgage company, you should understand that first-time home buyers have many preconceived notions of the loan pre-approval and home buying process.
Committing to a Lender
Obtaining a pre-approval letter from a lender does not mean the borrower is committed to working with that Kansas City mortgage company. This process just gives the mortgage company an opportunity to earn their business if they decide to work with them once they’ve chosen a home. If they are just getting a pre-approval, they won’t be required to sign anything that commits you to working with a particular individual. Many potential home buyers prefer to shop around and find the best deal.
Acting Honestly is the Best Policy
It’s imperative for any home buyer to be honest about their finances. If your clients fib about their income, assets, debt or any other pertinent details, this should be a deal breaker for you. They should be upfront and direct about what properties they own, and any issues on their credit report. Without honesty, it will be impossible to get them approved or to trust that they will respect your relationship and pay their mortgage on time and in full.
Being Pre-Approved Before Buying
In order to smoothly purchase a home, it’s important for clients to have a pre-approval letter before going shopping for their dream house. When home buyers do not know how much they can afford, it can be disastrous. For a Kansas City mortgage company, the pre-approval process gives you valuable information to determine how your borrowers should proceed. You will also get answers to important questions such as what they expect their monthly payment to be or what kind of interest rate they think they will attain.