Get preapproved BEFORE looking at houses!

Just because you've been prequalified does not necessarily mean you can buy a house! There is a difference between prequalification and preapproval. The pre-approval process is much more thorough. Since there is no property yet identified to purchase, however, an appraisal and title search aren't conducted.
    You are in a much stronger position to place an offer on a house when you have a preapproval letter. Knowing you are already able to purchase a property could be the deciding factor if the property seller has more than one offer on the table. Plus, when used in combination with a good buyer's agent/Realtor, you could possible save thousands on the price of a home with your added buying clout. Most good Realtors® will not show you homes until you are pre-approved. Many refer their clients to Enterprise Mortgage, as we will process your application and provide preapproval letters to qualified buyers at No Charge.

Making a large purchase before closing your loan could possibly cause your loan to be denied. On more than one occasion, a person that had been preapproved to purchase a home could not close because they bought a new car. The subsequent payments changed their financial picture enough that their ability to borrow was impacted. We have had clients that purchased a car a week before closing, and had their loan rejected due to the extra payments.

Purchase your new home (or refinance), then review if the additional purchase is still needed. The qualification process for purchasing a new car is much less stringent.

Be careful using builder owned lenders to take advantage of "incentive" packages

Many home builders offer incentives for using their lending company. These incentives need to be paid for, and often, it is in the cost of your loan. Make sure you have a Buyer's agent agreement with a real estate agent who can protect you from these potentially expensive packages.

ALWAYS get a written good-faith estimate.

    While rate is important, you have to consider the overall cost of your loan. Pay close attention to the APR, loan fees, discount and origination points. Enterprise Mortgage Loan Officers will go over EVERY line of a good faith. If your lender does not offer to do this, insist they do, or better yet, visit us!
    The Good Faith Estimate shows you who is making what money, and more importantly how much you are ACTUALLY paying for your loan. Sometimes lenders include larger that normal origination fees. Others might include discount points, which may make the loan look more attractive, but sometimes may be cost prohibitive. This information should be outlined in your Good Faith Estimate.  Your mortgage company is required to provide you with a written Good Faith estimate of closing costs within 72 hours of your submission of a complete loan package. If they have not given it to you within a few days of filling out your application, then call and make sure you receive it.

Get Estimates from Several Lenders

    We encourage you get good faith estimates from at least one other company if you are not familiar with the process. Remember, a reputable company will not charge you for this service!  The Estimate with the highest costs does not always mean they are the most expensive. This is an estimate, and sometimes, items may not always be properly itemized. Make them explain everything on the estimate.
    Plus cost alone should not be your only factor. Get referrals, and ask for referrals. And speak with your loan officers. If you are not happy with your representative, interview others! This is an important purchase, and you deserve to be comfortable with the entire process. (This goes for choosing a Real Estate Agent, too!)
    There are countless stories of consumers who ended up paying higher rates, or got a loan that wasn't right for them. Going to your bank because you've been a long time customer may seem like a good idea, but they can only offer you one product: Theirs. Enterprise Mortgage works with many reputable companies to find the product and rates that are best for you.

    Look at the cost of refinancing versus the savings per month. Assuming you are using similar programs, if it costs you $1500 to refinance, and it saves you $100 per month, that's great...as long as you're planning on being in your home for more than 15 months!
Refinancing can really help when you are paying mortgage insurance, frequently associated with FHA Programs. Ask us for our opinion on the appropriate course of action for your situation.

Read everything and make sure your loan officer can explain all the paperwork

    Closings can be lengthy, especially for an FHA approved loan. An Enterprise Mortgage loan officer attends every closing to answer any question you may have.

Shop around before you refinance!

    It may be easier to work with your current note holder, but they may not have the best rates or programs for your current situation. Your loan may have been sold to a third party (very common in the lending world).

    When we ask for documents, we generally need them asap! The sooner we receive your paperwork, the sooner we can get the best rate. In a worst case scenario, by procrastinating, your closing may get delayed, or worse, lose a good rate. Things to have ready when you apply: Two years of tax returns, two months of bank statements, two months of pay stubs, a driver's license, any old lending documents (in the case of a refinance), and information on any income, bankruptcies, liens, judgements or additional assets.

    Sometimes lenders add a prepayment penalty to new and more often refinanced loans. These will charge you a stiff penalty if you need to refinance or sell your home within that time frame. Many lenders that tout low interest rates use these, as well as some predatory lendors. That being said, there are times when this type of package may work for you. Your loan officer should make certain you understand this before you agree to the terms of the loan.

    While it may seem logical to wait, some folks will apply for a second loan even as they are getting ready to refinance their first note. Talk to an Enterprise Mortgage Loan officer before making any decisions. A second mortgage may negatively impact your chances of refinancing your first loan

    A loan is a set amount that you borrow and payback. This is a traditional home loan. A line of credit is open...you can borrow against it as often as you need, similar to a credit card. Be careful using a line of credit against the equity in your home. Many folks have used it only to eat up any equity they've built up in their homes.

Beware of companies that encourage you to pay off credit cards by using equity in your home

    If you are trying to get your spending under control, cut up the plastic first! If you are unable to make a credit card payment, it can affect your credit scores. When you are unable to make an equity loan payment, you could lose your home!