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Mortgage Tips for First-Time Homebuyers: An Interview with Marc Edelstein of Ross Mortgage Corporation

Tell us a little bit about your company and the services you offer.

Ross Mortgage Corporation was founded in 1949. As a full-service mortgage lender, Ross Mortgage delivers superior service and pricing to our customers because we possess underwriting authority and retain control over the entire transaction. What this means to you is that you can depend on us for competitive rates, quality service, fast response and no surprises. We offer an array of products including, but not limited to, FHA 203K, VA, and RD loans.

Is there a common misconception that first-time homebuyers have about home loans?

A common misconception first-time home buyers have is that they must have 20% down to buy a home. Some loans, such as a VA loan require NO down payment. Others, such as an FHA, only require a 3.5% down payment. It's important to ask about all the loan products available to find the one that fits your financial situation best.

What's the most important thing that banks will be looking at in the application?

The most important things a bank looks at while considering lending someone money is their credit report. Your credit report can tell a lender many things about you: Do you pay your bills on time? Do you have too many credit cards and outstanding debt compared to your income? Have you had a bankruptcy and worked to improve your credit or did you continue to fall behind? A bank looks at whether or not you have the capacity to repay a loan, the willingness and history to repay and what collateral you have should the loan go into default.

Can you briefly describe the difference between working with a mortgage broker and a direct lender?

The difference between a broker and a lender is easy to ascertain. A lender "Lends", or services, the loan. A broker works with a number of lenders so that they can shop for the best rates for you.

What are some of the biggest regrets you've seen first-time homebuyers have when it comes to the mortgage process?

Sometimes first time homebuyers regret waiting too long to start looking for their home. In some cases they realize they could have been saving money by paying less for a mortgage payment than they were paying in rent. Regrets during the loan process happen when buyers fail to follow their lenders instructions to not make any large purchases, open new credit accounts or change jobs. All of these can drastically affect your credit score and potentially cause you to no longer be eligible for a mortgage.

What advice would you give to first-time homebuyers to help them get the best loan terms as quickly as possible?

The best advice I can give first time home buyer to help them get the best loans terms is to shop around and start with lender referrals from people you know and trust. Make sure your lender goes over all of the disclosures with you so you understand what fee's you will be charged and what you can expect at closing. Don't be afraid to ask questions!

What's the best way for people to contact you and your company?

For more information you can contact me directly at (248) 658-2643 or email me at medelstein@rossmortgage.com For more information on the loan process and other mortgage related material, please visit my blog at www.thatmortgagebanker.com.

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