Dawna is a real pro! I am so glad she was on our team. For nearly four years she guided us through the volatility of the San Luis Obispo housing market, answering our questions from a far (we live in Montana) and flagging appropriate properties or developments along the way. When the timing was right and we found just what we were looking for, Dawna expertly guided us through the negotiations and inspections. This wasn't our first home buying experience, but we really appreciated how easy Dawna and her assistant made the whole process. We successfully closed in less than 30 days.
- Find a reliable, experienced, and local loan officer. If you are shopping rates and service providers, do this long before you start house hunting.
- Get prequalified for a loan. Although this may seem obvious, we encourage you to go further and ask your loan officer to calculate your payments at higher rates than today, so you have an idea of what to expect if rates continue to climb. Get qualified for both your budget amount and for the maximum amount that you can afford based on the standards/qualification process of your anticipated lender.
- Prepare all paperwork for your lender, and be ready to provide on short notice. If you have not had a real estate loan experience in the past seven (7) years, be aware that the rules for qualifying for loans are always changing and the process has become significantly more challenging. It may be a frustrating process at times. Your preparation and availability of documents will ease the experience.
- Lock your loan interest rate. If your lender encourages you to lock your interest rate, consider doing it immediately. A good loan officer will keep you informed about your choices and will have a perspective on past rates and fluctuations. Note: the lock timing may be affected by your purchase timing, if you are buying. Always review with your real estate agent before securing an interest rate lock.
- Consider a longer loan lock period when you lock your rate. This extended lock timing cost is usually paid at closing date through escrow and may be less than you think, and definitely less expensive than if you extend the loan lock later in the transaction. The peace of mind of staying within your budget may be worth it, especially as the purchase transaction progresses and if timelines extend beyond expectations.