Financing Basics

Financing Basics

How do I finance my home in Yakima, WA?

Financing your Yakima, WA, home is probably the most important step you will take when purchasing property. Taking the time to consider and shop for mortgages will end up saving you thousands of dollars in the future. All it takes is time and effort to find the mortgage that will fit your needs.

Finding the mortgage loan that is the perfect fit for you is not always easy, but we are here to help you in the process. Our friendly group of real estate agents are glad to assist you in any way possible. We are here to explain and discuss with you all of the potential financing options you may have.

If you have any questions along the way, please don’t hesitate to ask one of our agents. We are always more than happy to help you.

The steps to successful financing

Get pre-approved. If you are pre-approved, you will receive a credit application and a certificate stating your guaranteed mortgage amount. This allows you to understand exactly what your price range is when searching for a home, and you can stop wasting your time looking at houses you can’t afford. Spend your time investing in the Yakima, WA, home of your dreams.

Examine your finances. This is the time to gather all income and expenses you have, and analyze how much you can afford to spend in monthly payments for your Yakima, WA, home. A lender will only tell you how much you qualify to spend, but ultimately you need to make the choice that works for you the best. There is a difference between what you can technically afford, and how much you actually want to spend on monthly payments. Comfort is key when buying a new home, so don’t agree on a monthly payment that will make you concerned about your finances. Consider every single cost you might run into, like insurances and taxes. Remember to incorporate interest into your budget as well, and examine your priorities. Our mortgage calculator is a helpful tool that can help you find out what your potential mortgage might cost. To use our mortgage calculator, please click here. 

Consider what type of loan is best for you. Compare “fixed-rate” and “adjustable rate” mortgages. Fixed-rate mortgages have an interest rate that remains the same throughout the loan term. Adjustable rate mortgages have an interest rate that can float, or change, throughout the loan term. Ask the lender any questions you may have about the mortgage you decided on. In order to choose which mortgage you want, you need to answer some questions. Where do you see yourself in fifteen or thirty years? What obligations might you have in the future? These are some things that should be considered when choosing your mortgage loan. If you need help deciding on a lender, or if you have any other questions regarding your mortgage loan, please feel free to contact us. We are happy to help you with any questions you may have.

Check your Credit Report. Before you get your mortgage, you’re going to want to check your own credit report. This way, you know what is on your report from top to bottom. If there are any inaccuracies, you can fix them before your lender will take a look. You’ll be more prepared for owning your Yakima, WA, home by reviewing everything first, such as your credit report.

Shop Around.

Consider buying a home or property in Yakima, Washington! If you would like to look at a variety of different homes available in Yakima, take a look at our available listings. When acquiring a mortgage loan, you can choose either a direct lender or a mortgage broker when you are ready to finance your home.

A direct lender has money to lend and makes the final decision on your loan. Brokers are intermediaries who choose from many lenders.

A broker may be able to help find you a loan if you have special financing needs, but they will also receive a percentage of what you borrow.

While you're shopping for a loan, also look for the best loan costs/the fees written into the loan. 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. Hidden costs will catch you off-guard, so make sure you thoroughly read your mortgage loan agreement before you choose that loan. Make sure to gather written estimates so that you can compare mortgages and decide which one will be the best for you.

Apply for a loan. Applying for a loan is simple. First, gather all documents you need to verify your application. Include documents that describe your career and its stability, income, assets, and liabilities. Including paycheck stubs, bank statements, and tax returns wouldn’t hurt either. If you have any questions on what other documents you may need, please don’t hesitate to ask us.

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. Lock down your rate as soon as possible. This can save you a lot of money in the future. A rate lock will guarantee a certain rate as well as terms for a specific amount of time. Make sure that you get your rate lock in writing. Try your best to set the lock when you submit your application, because it may be too late to get the rate you want when you are at the approval stage. This ensures that your rates do not rise in the future.

Your lock-in period should be long enough to allow for all processing time. Most lock periods range from 15 to 60 days. Make sure to check with your lender or broker about the average time it takes them to process a loan.

Ask about Pre-payment. Prepayment can save you time and money in the long run. You can simply pay more frequently and reduce the amount of time you pay, or you can choose to pay a little extra each regular payment. Perhaps even including a lump sum toward the principal amount, or purchasing points to bring down the interest can save you a lot of money. Regardless of which route you decide to take, it is a good idea to do prepayment.

Some loans, however, do not allow prepayment, so make sure you contact your lender and find out if they do..

Clear up any financial problems. Do you have credit problems or owe money to the IRS? Buying a new home in Yakima, WA, is still possible. Contact a financial advisor or tax resolution service to find solutions.

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