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Working with a WA state mortgage broker can help you get the mortgage you need and help you make sense of the Loan Estimate. In this article, we’ll provide more information about Loan Estimates as well as tips on finding the best mortgage broker in the Evergreen State.
Typically, most people looking to purchase a home in the Evergreen State, and in general, need to secure financing or obtain a mortgage. But the reality is that a mortgage is a big commitment, one that requires you to be completely informed of your financial obligations, as well as all the fees that are associated with the loan.
The best way than to accomplish is by thoroughly going over your Loan Estimate with your WA state broker. A Loan Estimate should be given to you within three days of applying for a mortgage. This document will detail all the costs associated with your mortgage and will lay out the total cost of your mortgage. You can also use your Loan Estimate to compare other loan offers from multiple lenders.
That said, there is no denying that these documents are often complicated and difficult to understand.
This is why having a WA state mortgage broker is important. Your broker can help you make sense of the Loan Estimate, which will allow you to fully understand your financial requirements. If you need assistance finding the right WA state mortgage, then you have come to the right place.
Not only can a WA state mortgage broker help you consider all mortgage options that are available to you, but a local broker can help you get a better picture of your finances.
By reviewing your financial profile, including what your credit score is, your broker can tell you how much money you can put down and ascertain the monthly mortgage payment amount, you can handle. Armed with information, you can make better decisions about the price range of homes you can afford.
Though you have a rough idea of exactly what a Loan Estimate is, the official definition can be found in the Federal Real Estate Settlement Procedures Act. This particular act requires that lenders provide a document that outlines all costs associated with home loans when you start the mortgage process. Referred to as a “Loan Estimate,” this document must be provided to borrowers within three days of the mortgage application.
As briefly mentioned above, Loan Estimates help borrowers understand and compare the actual costs of their mortgages against other loan offers to help them assess whether or not they are getting the best deal. The closing costs listed on the Loan Estimate include things like the interest rate on the loan, insurance fees, and other fees associated with your home loan.
Loan Estimates can be complex documents that most people might have difficulty understanding. WA state mortgage brokers are available to help borrowers make sense out of what they’re reading, especially since not all lenders list all the costs in the same way—they may lump fees together in their Loan Estimates.
When assessing your Loan Estimate, you get a better sense of all the closing costs tied to your home loan. For instance, things like the mortgage interest rate on the loan, discount points, fees for discount points, appraisal fees, and credit report fees will all be spelled out for you on this document. Moreover, it is important that you hold on to your Loan Estimate and compare it with your closing disclosures.
Ultimately, you want to make sure that the interest lock-in fees, escrow fees, title search or title insurance fees, and adjusted origination fee versus the quoted interest rate are all accurate.
While mortgage brokers are important professionals to have by your side, they may be of more help in certain areas than others. That’s because some locations have additional localized costs that may increase your overall mortgage burden. And without a mortgage broker to assist you, you might neglect to take these extra costs into consideration.
You should be able to fully understand not just what is outlined in your Loan Estimate but what your entire financial obligations are for your mortgage. And to do this, you will need to understand any nuances that the location in which you are buying might have.
Overall, finding the right WA state mortgage broker is very similar to finding a real estate agent. Start by asking friends who they used and specific facts on why they liked their services. Do some online homework about brokers in your area. Look at online reviews, read bios, and research experience. Ask your real estate agent who they have worked with in the past and who their customers seem to give good feedback about.
Also, you should make it a point to check potential out through the state’s licensing authority to be sure they have a current license and are in good standing with requirements. Once you have narrowed your WA State broker list, don’t forget to ask questions.
Ultimately, the answers you are given will help you choose the right WA state mortgage broker for you. A few questions to ask right off the bat are what their typical lines of communication are, what their fees are, what mortgage products do they offer, and what their posted interest rate is. You can also ask about your down payment requirement, whether or not you can pay down your rate with discount points, what the fees associated with discount points include.
While searching for your future mortgage broker, there are a few things you can do to help your chances of being approved for a loan down the road, such as boosting your credit score and figuring out what mortgage product you will likely need.
It’s best to go into the mortgage process with the best credit score you can muster. If your credit score is a little on the low end, consider taking some time to improve it.
You can do this by being timely with all bill payments, keeping your credit card expenditures less than 30% of your credit limit, making full credit card payments, and not taking out any new loans. You should also have the credit bureau fix any mistakes on your credit report, sooner rather than later.
It’s helpful to do some homework on the various types of mortgage products available out there. That way, you can determine which one is best suited for you based on your particular financial situation.
Ultimately, choosing the right mortgage broker in WA state who can provide you with impeccable customer service, offer you the right products, and help you make sense of your Loan Estimate is very important. For this reason, it only makes sense that you take as much time as needed to find and choose the best mortgage broker for you.
When you apply for a mortgage, you won’t necessarily be allowed to take out any loan amount. Loan limits are placed on home loans, which are dollar caps on borrowed amounts, and any amount that is higher than means you are taking out a “jumbo loan.”
Loan limits are adjusted every year to reflect the rise in home prices. Every county in every state has its own loan limit set, though many counties may have the same loan limit amount.
Conventional and FHA loans both have their own specific loan caps that are adjusted each as home prices increase.
For VA loans, loan limits were eliminated in 2020. Having said that, some borrowers may still have to abide by loan limits if they have an active VA loan or a previous default on a VA loan.
Check out our mortgage loan limit tool for conventional, FHA, and VA loans.
If you are in need of the assistance of a seasoned mortgage broker, Sammamish Mortgage can help. We are a local, family-owned company based in Bellevue, Washington. We serve the entire state and have a strong focus on WA cities including Seattle, Tacoma, Spokane, and Vancouver. We offer a wide variety of mortgage programs and products with flexible qualification criteria since 1992. Please contact us if you have mortgage-related questions.
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