Who you use for your mortgage DOES matter!
A reputable company, with a representative in your area, is most likely to work to assure that your final paperwork matches the promises they made to you earlier in the process. Online lenders can be quick, easy & competitive, but you will want to be particularly diligent in your dealings online. As an agent, I attend many home closings and I have certainly seen closings where the interest rate or payment amount were not as expected and there was no one available to talk to at closing time. With your moving truck parked in front of the new home and your family impatient, it is a difficult time to decide to walk away and hold firm on the terms you were expecting. Ask your Realtor, a family member or someone from your office to recommend someone if you do not know anyone personally. Work with a lender that you know is reputable and successful in your area, as it will save you time & money in the end!!

Shop for the best mortage you can find.
While I emphasize the importance of choosing the right lender, I also want to emphasize the competitive nature of our current mortgage market. There are many different programs and many lenders with different levels of risk acceptance, so it does pay to get at least two solid quotes from reputable mortgage lenders. I suggest that you try to obtain an “apples to apples” comparison by using the same identical information with each lender you contact. Try something like this: “I have $10,000 to use as a down payment, closing costs, EVERYTHING and I am buying a home priced at $150,000. You may run my credit report and I want a quote from you on a 30 year fixed mortgage and one other plan that you might recommend.” Always use the same numbers and do not be distracted by questions. NO you do not have other money, only the amount you originally gave them to cover all costs – it is important that you measure the same costs and down payment amount so be consistent. Many times they will claim to charge no points, but will instead have a processing fee, an underwriting fee and several other fees instead. ALWAYS ask for a written Good Faith Estimate on the two programs you are requesting using only the numbers you provide to them. Get a pre-approval letter based on the price range you are shopping and deliver that to your Realtor. Once you have a contract on a home, then you can return to the mortgage lender that you feel the best about to make final decisions and a commitment to them for the loan. If you stick to these rules, you should get a good idea of who is offering you the best deal and have the fewest unpleasant surprises on closing day.

Do not make large purchases just prior to purchasing your home.
A common mistake made by homebuyers is to go ahead and make a big purchase, changing their debt ratio, before closing on their new home. It is tempting to purchase a new room of furniture using the 12 months interest free or buy that new car you’re going to need or charge a vacation to the Bahamas as a break between houses. Mortgage companies have the right (and many do it!) to run your credit report immediately before funding the loan, so your recent purchases WILL be discovered and can negatively impact your mortgage terms.

Try not to move your money around.
When a lender reviews your loan package for approval, one of the things they will be concerned about is the source of your funds for your down payment and any undocumented income/expenses in large amounts. Though many loans today require limited documentation, if you are asked to provide recent bank statements, retirement account statements, etc. it will be much better if there is no major money movement to explain. Fraud is rampant in the mortgage business and a complete paper trail of deposits & withdrawals can be required if anything unusual appears – believe me, providing further documentation is tedious and exasperating for all parties involved! A stable financial record can be a big asset during the loan process.

For most people, changing jobs will not affect your ability to qualify for a mortgage loan.
Most people can show a stable history of employment in a certain field or industry, regardless of length of current employment. Especially if you are earning more money, a new job can be a plus. If there have been gaps in your employment, be prepared to explain.

Do not make any agreement between buyer and seller, even if you are buying a For Sale By Owner, that is not written down.
Even if both parties have the best intentions, misunderstandings can and do occur, so insist on the protection of detailed, written agreements. If you are using a licensed Realtor, trust me, there is a form for every possible scenario!

Have a licensed inspector do a thorough inspection before purchasing any home.
In Texas, every contract on existing homes has an “option period” that gives buyers a negotiated number of days in which they have the unrestricted right to terminate the contract. It is during this time that buyers customarily have a home inspection completed and negotiate any repairs with the home seller. Even on a new home, frequently buyers will elect to have a professional inspector go through the home in order to note any last minute issues like hot/cold water reversals, inoperative electrical outlets, or malfunctioning sprinkler heads. It is always a good idea to have detailed information about the condition of the home that will be yours.

Review area restrictions.
Local zoning laws or homeowner association restrictions can be important in your purchase of a new home. Most buyers today find some level of restrictions desirable – no trailers on cement blocks in the front yard, etc. But it is also important to know if they will not allow you to move the fence any closer to the front of the house so that you can build a run for Fido, or do not allow your parents’ mobile home in the driveway for more than 24 hours. Boats, storage sheds, workshops, at home business needs – all of these can be restricted by either the city or the neighborhood. Knowing those restrictions in advance assures that you will be happy living with them after the sale.

Choose an experienced Realtor that specializes in the areas that interest you.
Most realtors specialize in a geographic area, whether they admit it or not! In the DFW metroplex, the area is so large with so many different communities to choose from, it is frankly impossible for any one agent to know them all. You want to work with an agent that is knowledgeable about area schools, commute patterns and future development projects. Ask specific questions of any agent you consider and look at the web site for the areas they market as their specialties. It is also true that certain designations indicate expertise in working with buyers – like the Accredited Buyer Representative. Bobby Pennington, our buyers’ specialist, is an Accredited Buyer Representative and a Certified Residential Specialist, so you know he is experienced in matching clients to communities for their long term satisfaction! Our team specializes in the north Dallas/Ft. Worth area from McKinney, Plano, Allen, Frisco, Flower Mound, Lewisville, Highland Village, Argyle, Coppell, Southlake, Colleyville and the immediate vicinities. If you need to look outside of the north Dallas/Ft. Worth area, The Anne Lakusta Team can help you find an experienced RE/MAX agent that will help you find the best home for the best price in any area! We will always be working in your best interest.

Do a final walk through right before closing.
This is an important and often overlooked step in buying a new home. You may be able to see conditions that were not visible with the sellers’ furnishings in place. You may notice damage that occurred during the move out. A personal example occurred on a clients’ purchase of a new home. I met the husband early in the morning, before he went to work, to walk through their newly completed home and everything looked great. When I met the wife at the home immediately prior to closing, the entire granite island counter top had been removed. It was clear that someone had stolen the entire piece of granite, but since we did a walk through, we knew to hold funds in escrow until an acceptable countertop was installed. Experience is always the best teacher – and you can imagine that, on our team, we put a great deal of importance on those final walk throughs.