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Practical points to keep in mind whether you are buying your next home or wondering if a refinance makes sense.
In today’s real estate market, working with an experienced mortgage company makes a difference. Southwest Funding has served clients since 1993 and holds an A+ rating from the Better Business Bureau. As a direct mortgage lender, Southwest Funding offers VA, FHA, USDA, HECM (reverse), Fannie Mae, and Freddie Mac loan programs.
A few things worth keeping in mind before you make an offer.
A rate quote or online estimate is not the same as a Loan Estimate, the standardized disclosure a lender provides once you apply with a property in mind. Compare Loan Estimates side by side, and be cautious of an offer that looks far better than the rest. Buyers on a deadline are more exposed to last-minute changes, so choose a lender you trust early.
A preapproval can mean different things at different lenders. Having your documents reviewed by an underwriter before you sign a contract can add confidence to your approval. Southwest Funding offers underwriter review before you have a contract. Final approval always depends on a full review of your file and the property.
Bonuses, commissions, overtime, and self-employment income are often evaluated differently than base pay, and some programs limit how they count. Disclose every source of income up front so there are no surprises late in the process.
A lower price helps over the long run, while seller-paid closing costs, where the loan program allows, can reduce the cash you need on closing day. Limits vary by program, so talk with your agent and loan officer about the right balance.
Lawn care, repairs, furnishings, and updates add to your budget beyond the mortgage payment. Build them into your plan from the start.
Property taxes may be reassessed after a purchase and can differ from the seller’s current bill. Ask how taxes are estimated so a change in your escrow payment doesn’t catch you off guard.
Above all, enjoy it. Buying a home should be exciting, and good questions make it easier.
You are free to choose any lender when you buy a new home. Before you commit, a few points are worth checking:
The process is very similar. You apply, provide documentation, and pay many of the same types of fees. The main difference is that you are not buying a home this time. Some costs may be lower than at purchase because certain services were already completed.
Compare your expected monthly savings with the cost of the refinance to find your “break-even” point, the time it takes to recoup those costs. If you plan to stay in the home beyond that point, a refinance may be worth considering. Try the refinance calculator to see what to expect.
Next step
Keep learning with a closer look at credit, loan types to watch out for, and common costs, or reach out with your questions.
This information is for general education only and is not legal, tax, or financial advice, a commitment to lend, or an offer of credit. Programs, rates, terms, and eligibility are subject to change and to underwriting approval.