This article is sponsored by Trinity Oaks Mortgage.
When taking the leap into homeownership, it’s natural to seek advice from family and friends who have been through it.
While advice from those you trust is important, you may find that suddenly everyone is an “expert.” You can be steered in a wide range of directions according to each person’s unique experience.
Furthermore, depending on who you talk to, the home buying process might be portrayed as stressful, thus making you want to run from it altogether.
Trinity Oaks Mortgage in Frisco (often referred to as “the lender you love”) wants to help dispel some common myths and misconceptions about the homebuying process.
Derek Freitag, Regional Sales Manager, reassures us that taking the plunge is easier than you think. He emphasizes that it’s important to learn the facts and how they impact you.
The down payment requirements are not as strict as you may think.
A 20% down payment is no longer a hard requirement for first-time home-buyers. The more you can put down up front, the better your terms will be, but even 3.5% is acceptable.
If you can’t come up with that much, down payment assistance programs and other options are in place to provide grants that support homebuyers in certain circumstances.
For some USDA and VA loans, even 0% down options are available. Gifted money from family or friends is also acceptable to a lender, provided they can see the documentation that shows from where the funds have been sourced.
Perfect credit is not necessarily essential.
Your credit score is the number one factor in determining your interest rate, however, it doesn’t have to be perfect. While most people’s scores fall between 600 – 750, these are the scores and ratings to be aware of:
- 580 – 669 is fair
- 670 – 739 is good
- 740 – 799 is very good
- 800 is exceptional
Trinity Oaks Mortgage won’t turn any potential homeowner away, but rather, they delight in working with customers with lower credit ratings to support them on their personal road to homeownership.
It could mean waiting until they can improve their score, but Trinity Oaks will help the client set goals and targets to strive for. It’s all about planning. Derek explains,
If you have just a fair score, you’re not going to get as good an interest rate as compared to someone who has an exceptional rate, but it does not mean we can’t get you into a home. Everyone has hiccups with credit in this day and age, but we can process loans with as low a score as 580. As long as an individual is within that fair range, we can get them there.
Using tools and tricks in the industry, they can work with individuals or families to assess a current credit situation and improve scores. Connecting with credit support agencies, there are multiple options for finding a more positive path to homeownership.
The paperwork process doesn’t have to be stressful.
While there’s a lot of publicity out there about mortgage lenders who participated in bad practices, the reality is this – the mortgage process has evolved, improved, and become fairly streamlined.
Trinity Oaks Mortgage can talk you through their process in just a few simple steps. They like to combine face to face meetings with as much or as little technology as you would like to use throughout each stage, no matter what your circumstances.
Their process is supported by a unique, user-friendly app that allows their clients to upload documents securely rather than via email or fax.
Clients can also use the app to communicate and message with their loan officer at any time and to receive updates throughout each stage of the process.
Potential clients can also use this tool to get pre-qualified. Derek explains,
Secure technology has become so important. These days you’re more likely to have your car broken into and all your supporting documents for a mortgage application stolen. Likewise, what if your email account is hacked? Secure technology is a better, safer option.
Oftentimes, those in a great position to refinance are hesitant to do so, despite learning they could save a substantial amount of money. It’s just not worth the hassle of paperwork. But Trinity Oaks Mortgage prides themselves on a safe, simple, stress-free process.
Pre-approval helps a LOT.
While it’s tempting to view homes on the market and attend open house events, it’s better to spend time with a lender first. Then, you can discover exactly what’s affordable for you before becoming emotionally tied to a dream home. This is where pre-approval is key.
Pre-approval involves a deeper dive into an individual’s assets and income to be sure they can afford to purchase their desired home, or even look at homes within a certain price range.
Visiting a seller with a pre-approval letter secured can be the advantage you need to win that home against other buyers – and may even give you the option of negotiating a better price.
In today’s competitive Frisco market, this step means the seller can trust your circumstances to purchase smoothly over other buyers who may not have yet reached that stage.
Professionals really do know what they’re doing.
Final advice from Derek is to always consult a professional throughout the process. This includes using a real estate agent who will partner with the loan officer to support the home-buying experience.
A good real estate agent is going to have all the tools and relationships available to know the market, support the customer, and negotiate better prices.
Just as you wouldn’t use “Google Doctor” when you have a specific illness, it’s not always best to let friends and family diagnose your situation and send you down a path simply because it worked for them…in years gone by…or even a generation ago… The market has changed.
Collin County is a prime example – the rules in the industry are adjusting and changing all the time. Lenders, real estate agents, and banks have had to respond and maneuver as people’s circumstances and sources of income have evolved.
For example, a lot of people have side hustle income now and over time have turned it into their sole job and transitioned to becoming an independent business owner. Derek has worked with people in many different circumstances.
Many clients I’ve worked with have become creative in how they make money. Some people are buying houses as investments and some buy them to use for Air B&B. Everybody’s situation is different and the entrepreneur spirit is in full swing.
Whatever your situation or circumstances, the Trinity Oaks Mortgage team in Frisco is ready to talk to you, review your details, and support you every step of the way in your journey to homeownership.
Consider contacting them today and enjoy the support of their expertise and exceptional customer service.