Most people know that the first step in the home buying process is meeting with a mortgage specialist to determine how much house you can afford and what type of loan product for which you qualify.

Knowing these things is really important for several reasons:

1. It helps the realtor locate properties that are affordable to the buyer.
2. It helps the realtor locate properties that are suitable for the type of loan for which the buyer is approved.  For example, if the buyer is pre-approved for FHA financing, some foreclosure properties might be in such poor condition that they will not meet the FHA guidelines.
3. All offers to purchase must be accompanied by a pre-approval letter showing the seller that the buyer has the means to get loan.

Given today's ever changing mortgage guidelines, it is of the utmost importance to choose a mortgage specialist who is an expert in the industry.  After all, no buyer wants to believe that he is qualified to purchase a property only to find out later in the home buying process that he cannot buy a home.

I know this sounds rather crazy, but it happens.  I've seen mortgage "specialists" pre-approve buyers for loan products that they simply don't qualify for or don't fit their financial profiles and promise low interest rates upfront that they knew the buyer could never get (which affects their monthly mortgage payments).

So how do you choose a good mortgage specialist?  Referrals from friends and family are a good start, but don't discount the mortgage specialists that your realtor refers.  Remember that your realtor works with mortgage specialists everyday and has seen the good, the bad, and the ugly.  And trust me, your realtor wants to make sure that you work with an expert in the field because it makes the entire home buying process much less stressful.

Although there are a pleathora of online mortgage companies, I prefer my clients to work with a local lender.  Each locale has its own real estate and lending ideosyncrasies and in my experience, local lenders are not only knowledgeable about these things, but are best equipped to deal with them as well.

So if you are thinking about buying a home or refinancing your current mortgage, I suggest that you interview several mortgage specialists that have been referred to you by trusted resources and ask them for references.

Check out our additional information about Getting a Mortgage and Good Faith Estimates.  Also, play with our Mortgage Calculator to see how interest rates along with purchase price affect your monthly mortgage payment.

By the way, if you would like us to refer you to some really great mortgage specialists, please feel free to call us at 410-215-4201.

Wishing you sunshine everyday and the home of your dreams,
Jeri