Financing

The way you approach mortgage shopping can literally save thousands of dollars. 

Take time to understand the system and make educated decisions.  Doing so, may very well cost you less over a shorter period of time.

How much can you afford?   Mortgage Calculator  Remember this is only a rough idea of what you can afford.  There are several factors that lead into your final rate.  Call one of our lenders to find the best loan program for your situation and needs.

Two Names you can trust:
Matthew Lord Wells Fargo Home Mortgage - Bellevue - 206-390-2441
Ronna McGhee America One Finance - Redmond - 206-669-0453

The steps to successful financing:

Get pre-approved.  Don't skip this step.  Getting pre-approved is fast, easy and free.  A written pre-approval includes a completed credit application and a certificate guaranteeing you a mortgage to a specified amount.  With one in your pocket, you won't waste time looking at homes you can't afford. Instead, you can invest your time shopping for the home of your dreams - and in your price range.

Examine your finances.  How much can you afford to spend? While a lender will tell you how much you qualify for, it's up to you to figure how big a payment fits into your budget. 
Consider what type of loan is best for you.   Compare fixed-rate with adjustable rate mortgages. The lower the interest rate the greater your buying power.  Look down the road. What obligations might you have? Take those things into consideration as you choose a loan.
Check your Credit Report.   A lender will run a credit report on you (it only takes a few minutes), but you'll be ahead of the game if you acquire a copy first. You'll know exactly what's on it and be able to correct any inaccuracies. 

Shop Around.   When you're ready to get a loan, explore your options.  You can choose either a direct lender or a mortgage broker.

A direct lender has only their loan programs to lend from. Brokers are intermediaries who choose from many lenders. Either may be able to handle your loan.  If you are going to compare loan programs be thorough. 

While you're shopping for a loan, also look for the best loan costs. These may include:

• Interest rates  
• Broker fees
• Points (each point is one percent of the amount you borrow)
• Prepayment penalties
• Loan term application fees
• Credit report fees
• Appraisal costs

Be aware.   Don't let hidden costs sneak up on you. Ask your loan representative for a written "Good Faith Estimate".  You will receive another one from the actual funding company when you lock your loan.  Keep in mind that this is an estimate and may vary slightly when you close.

Clear up any financial problems.  Do you have credit problems or owe money to the IRS?  Buying a new home may still be a possiblity.  Contact a financial advisor or tax resolution service to find solutions.

Ask about Pre-payment.   You can shave years off the length of your mortgage by restructuring the way you pay back your loan. Simply paying more frequently can save thousands in interest. So can making a lump payment toward the principle - or paying a little more each month. These methods are called pre-payment.  Not all loans allow for pre-payment. If you want the option, discuss it with your lender or broker.
Apply for a loan.  Gather all the documents you'll need to verify your loan application. Lenders will want to know your job tenure, employment stability, income, assets (property, cars, bank accounts and investments) and your liabilities (auto loans, mortgages, installment loans, credit-card debt, household expenses and others).  You'll need to provide documents such as paycheck stubs, bank account statements and tax returns.  Check with your lender or broker for more information.
Lock it down.   With interest rates changing daily, locking down your rate can prove to be a big money saver. A rate lock - in writing - guarantees you a certain rate and terms for a specified period of time. Lock in all the costs you can, including interest rates and points.  When rates are rising, try to set the lock at the time of application, not at approval. This will protect you from rising rates.