There has been a shift upward in home mortgage rates over the past 60 days…not a big one mind you but enough of an increase that a critical “1st call” is to your lender as you begin discussions with a builder about building a new home.

Whereas in the past, over 3 years ago, you could call your lender over the phone and get a rough idea what your financial profile looked like and determine “how much house can I afford,” that scenario is far different today.

Credit scores can determine what rate of interest your mortgage will be at. How much equity you ‘think’ you have in your present home and how much you will actually receive after a sale in today’s existing home sales market can vary widely. Lenders have been changing the minimum amount of Down Payment required to qualify for a loan.

All of these circumstances are in addition to the standard qualifying requirements of length of employment, compensation amounts, debt load ratios, mortgage terms whether fixed rate or variable and length of mortgage payback in years.

The best advice a Housing Consultant at Fine Line Homes can give a potential home buyer is to make a personal appointment with his/her lender and gain as much knowledge as you can about how much house you can afford, how the qualification process can be affected by current home sale, how the ‘construction loan’ procedures work, what role does the appraisal play in loan approval, what are the time restraints on lender communications such as a Pre-Qualification letter or a Pre-Approval letter and how they differ vastly from a formal Mortgage Loan Commitment Letter.

Your Fine line Homes Housing Consultant will need to know from you what your “financing plans” are – remember he or she is there to help you to bring your home building dreams to a happy, joyous and stress-free conclusion. Your meeting with your lender is an important ‘first step.’