PHILADELPHIA, PA, August 21, 2013 /24-7PressRelease/
-- For most potential homeowners, the mortgage application process is daunting, and in some cases even confusing; as though purchasing a home was not stressful enough, the loan application process can be complex and confounding--but in a new statement to the press, John Hess Hyperion Capital
director, offers a few pointers. He specifically highlights some of the advice given in a recent Republican American article.
"The first major rule when applying for a new loan is to have a payment that you can afford and never go above that amount," offers John Hess, Hyperion Capital director, in his new press statement. Indeed, having a home mortgage "budget," and sticking to it, is vital for anyone seeking to buy a home without accumulating too much debt.
Hess goes on to offer further words of advice for mortgage-seekers. "Many times, borrowers will be told by real estate agents to get pre-approved or pre-qualified prior to shopping for a home," he explains. "This serves a couple of different purposes; for one, it shows that the borrower is qualified and the agent doesn't feel like he is wasting his time, and two, it reveals that a lending institution as already vetted out the borrower to make sure he can complete the loan transaction and what criteria the property must fall into."
Hess continues his advice from there. "The lender is always looking to have the borrower max out the full amount that the qualify. Why? Simple: They have quotas and want to make the most per loan as possible. The problem is that these pre-approvals normally don't show the borrower their monthly payment."
John Hess, Hyperion Capital director, continues: "If the borrower wants a $1,000 monthly payment, the lender may say they are approved at a $1,500 per month and thus qualify for a large loan amount. This becomes a major problem when the real estate agent starts showing homes in that higher price range. Most borrowers will normally desire the higher price homes because they can envision themselves living in a larger, nicer home if they had a choice. The issue is that the borrower isn't acknowledging how much those homes will cost them per month and how it's far exceeds their set amount."
As for the Republican American article, it begins by admonishing potential homebuyers to build a strong credit score. "Bad borrower behavior -- like late credit card or other loan payments, having a foreclosure or bankruptcy in one's credit report and carrying high balances -- will weigh down your score," the article cautions.
The article also encourages consumers to understand the options available to them--such as the option they have for making a larger down payment in order to secure smaller mortgage payments. Further tips offered in the article include keeping an eye on fees, waiting for good deals to come around, and shopping around at different lenders, seeking the most desirable rates and terms possible.
John Hess, Hyperion Capital director, is passionate for working in tandem with borrowers, helping them receive the loan services they truly need.
John Hess Hyperion Capital
director, is in charge of negotiations and new project approval for the company. He also leads board meetings. Hyperion Capital itself, meanwhile, offers financing and relocation services for borrowers across the country. The company is based in Texas, and has been a major player in the home loan and relocation industry since 2001.