For a new home buyer, applying for a mortgage can be exciting — and overwhelming. The paperwork involved can be dizzying. One mortgage CEO talked to MarketWatch about his top three tips that may help prospective homebuyers.
After working at Zillow, Schwartz said he “fell in love with the mortgage industry” which he admits is not a sentiment many express. “I found the complexity, the capital market element, and a very interesting cost structure in this industry that is massively unnecessary,” Schwartz said. This loan estate provides information like your estimated interest rate, monthly payment, total closing costs, tax, insurance, and so on.
“So that would be the one thing, to ask every friend, every family member and every reader of yours — always get a loan estimate” Schwartz said. People should ask their lender to run scenarios, such as what happens when they put 20% down, versus 25%, or 15%, and see what happens to their monthly. They could also ask them how much their mortgage loan changes when their income sources change.