Real estate agents are not necessarily mortgage specialists. However, we all know that financing is an integral part of any real estate transaction, and buyers often look to agents for some guidance relating to their loan options.
It is for this very reason that agents maintain strong relationships with local lenders and mortgage specialists. With all the issues involved in coordinating the sale and purchase of property, many agents simply don’t have the resources to become experts in such an ever-changing field as mortgage products.
There are now more choices than ever in terms of documentation, payment options, and loan terms. Just as examples, some of the most popular loans are Fixed-Rate Mortgages, Adjustable-Rate Mortgages (ARMs), and Interest-Only loans.
“Fixed” are just that – regular principal and interest payments for an established period of time. ARMs fluctuate, but new “hybrids” offer a fixed rate after a certain number of years. Interest-only loans are uncertain if you choose not to pay any principal in the early part of the loan, but can work out if you need short-term cash flow or intend to move or refinance shortly.
Every buyer has a best mortgage match, and there are literally hundreds of options. It can make your head spin! Have an agent recommend another professional who can help get you into the home of your dreams.
This article was originally published on this site on January 30, 2015. It has been updated reflect the current home market.