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Third parties who you pay for assistance with any type of product or service need to provide real value, and the world of loan officers and mortgage lenders is no exception. A good loan officer will provide value in several ways, and one of the simplest and most straightforward is this: They'll help save you money.
At Primary Residential Mortgage, we're happy to offer a wide range of home loan options and related services to clients throughout Plano and nearby parts of Texas, from quality first-time homebuyer options like FHA loans to various other loan programs, including conventional. What are some of the ways our loan officers directly help clients save money during the mortgage and homebuying process? Here are several in this two-part blog series.
Explaining and Detailing the Process
First and foremost, many homebuyers -- especially first-time homebuyers -- often need significant guidance as they navigate the mortgage process. There are a lot of steps, a lot of potential complications and a lot of important choices to make along the way.
A loan officer can provide that guidance, helping you choose the best loan program for your unique situation while also detailing what to expect every step of the way. This is crucial in avoiding any nasty surprises or costly errors. Furthermore, having this guidance can also help you immensely in the homebuying process itself.
For example, suppose you're a first-time homebuyer who is approved for an FHA loan. Your loan officer will explain to you that as part of this program, you'll need to purchase private mortgage insurance (PMI). You'll also be told how to cancel this insurance once you've reached 20 percent equity in your home.
Without that guidance, you might not realize you need PMI in the first place and could thus overspend on your home. Alternatively, you might not know how to cancel the insurance later on, leading to years of wasted money. Either way, a loan officer's guidance can save you significant amounts of money over the long haul.
Financial Review
Another important service loan officers provide is a financial review. Essentially, this involves going over your finances in great detail to ensure that you're making sound decisions and will be able to afford everything related to your mortgage.
This might seem like a pointless formality at first glance, but it can actually save you a lot of money.
Weighing All Your Loan Options
Not all home loans are created equal, and this is something that a lot of homebuyers don't fully realize. There are all sorts of different programs available out there, each with its own set of benefits and drawbacks.
A loan officer can help you compare and contrast all your different options, ensuring that you choose the program that best meets your unique needs while also helping you avoid any unnecessary risks or expenses. For example, someone with good credit might assume they should go with a conventional loan since they'll likely qualify for a lower interest rate.
However, if they're also self-employed, they might not realize that there are specific loan programs available -- like the Fannie Mae HomeReady program -- that cater to their unique situation. As a result, they could wind up paying much more than necessary.
A loan officer can help you avoid this, and many similar issues.
For more on this, or to learn about any of our loan officers and the services we provide to clients throughout Plano and other parts of Texas, speak to the team at Primary Residential Mortgage today.