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Navigating the Mortgage Maze: How Do I Get a Good Loan? · Becoming Financially Confident

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  Ralph: You've saved, you've prepared, and you know you can afford it.
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  But now comes the step.
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  Most people find intimidating, and that's actually applying
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  for a mortgage, different loan types, interest rates, paperwork.
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  It can feel like an absolutely confusing maze.
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  How do you find the right mortgage without losing your peace?
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  Well, stick with me today 'cause I'm gonna share how to navigate this
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  process with confidence on today's show.
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  Hey there.
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  Welcome back to your Daily, financially Confident Christian.
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  I'm Ralph and it is great to be with you again today.
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  As always, this is the show that helps you answer that very pressing
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  question, how can I become a financially confident Christian?
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  And we're deep into the topic of home ownership as we continue our series
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  dealing with the stress of money worries.
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  So you've done the vital work of assessing your affordability.
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  You know what you're comfortable in buying.
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  You've prepared your finances, you're saving now for the down payment.
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  You're building those reserves and you're polishing your credit.
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  And let me just tell you right now, preparation is the key in all of this, but
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  today we're gonna step into the process of actually doing the financing of that home.
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  . And for many, the mortgage application is the most complex, and trust me, the
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  most stressful part of buying a home.
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  There's a lot of options and a ton of paperwork.
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  So let's ask this question today.
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  How do I navigate the mortgage maze and get a good loan without
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  adding unnecessary stress?
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  That's a real good thing to talk about today because I bet you've heard the
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  stories, piles of documents requested, confusing terms, trying to compare offers
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  with different lenders, worrying if you'll even ever get approved at the end of this.
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  The struggle of the mortgage process, is very complex and a feeling of
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  being outta control is very common.
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  And a lot of people have said, Ralph, I just feel like I'm
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  at the mercy of the lender.
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  I make you feel stressed about making the wrong choice on a loan type.
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  Am I getting a fixed rate or an adjustable rate?
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  am I getting the best interest rate or am I, am I going to hit
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  these unexpected roadblocks?
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  And those roadblocks, lemme just tell you right now, they can even delay or
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  derail your home purchase altogether.
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  And then let's not even talk about the sheer amount of
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  financial information required.
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  There's a bundle of stuff you get and the high stakes involved with
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  such a large loan and that can just truly add significant anxiety.
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  But here's the thing you need to understand.
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  I want you to accept this at the very beginning.
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  The mortgage process is complex.
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  It's not simple, but you don't have to navigate it blindly.
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  If you understand the basics and you're prepared, that will help you tremendously.
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  Think of it like seeking wisdom and counsel for a major decision, which
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  is exactly what the Bible encourages.
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  Look at the book of Proverbs, chapter 11, verse 14 says this.
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  Now, we're not talking about nations, but I thought this was really
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  appropriate for the lack of guidance.
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  A nation falls, but with wise counsel comes victory.
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  We definitely want victory over this mortgage process.
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  And look at Proverbs chapter 24, verse six.
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  It says this, surely you need guidance to wage war.
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  And victory is won through many advisors.
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  And like I said, a mortgage isn't a nation, but we all need to seek wise
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  counsel from trusted advisors, trusted lenders, and get a better understanding
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  of the process because that's crucial for victory in securing a good loan.
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  And this is going to be a battle.
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  Approach this process with diligence and approach it with a prayer
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  for heart, trusting that God can provide clarity and guide you.
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  Right.
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  To the final part of this financing, and again, I'm gonna reiterate this again,
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  this is truly an act of responsible stewardship to ensure the terms of
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  your largest debt for most people.
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  Buying a home is going to be your largest debt.
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  So you wanna make sure the terms are favorable and more importantly,
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  that they're manageable.
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  So now you're thinking, Ralph, that sounds very complicated.
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  You already told us this was complex.
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  What can we do?
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  How do we cut through the confusion and the stress of that mortgage maze to really
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  get to the end and secure a good loan?
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  Well, as always, I've got an answer.
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  My answer today is pretty straightforward.
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  Starts with educating yourself on the basic types of the mortgages.
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  Shop around with multiple lenders.
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  Get that pre-approval before you even think about making an offer on a home.
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  And I'm gonna say something that's gonna be a little bit
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  outside the realm of Normalness.
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  I'm gonna say get that pre-approval letter before you even go shopping for a home.
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  'cause you gotta understand what you actually can afford and what you're
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  going to be able to qualify for.
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  Because this proactive approach empowers you, I wanna empower
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  you today with knowledge that can strengthen your position as a buyer.
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  So, okay, here's your one vital action step for today, specifically focused
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  on navigating the mortgage process.
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  It all starts with a basic understanding of the mortgage type.
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  So I'm gonna encourage you to take 20 or 30 minutes and research
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  the different types of loans.
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  You know, that could be something like a fixed rate loan where the interest
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  rate stays the same over the life of the loan, gives you stability in the rate.
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  Or maybe for you it's an adjustable rate where the interest
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  rate can change periodically.
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  Sometimes that gives you a lower initial payment, but then
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  introduces some uncertainty.
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  There's pros and cons for both and consider which of those loans
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  might fit your financial plan and your risk tolerance best.
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  So once you do that, you figure out, yes.
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  I wanna get a fixed rate loan, then I'm gonna encourage you
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  to shop around for lenders.
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  And a lot of people don't realize that you can do this.
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  Yes, you can shop around for lenders.
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  You don't have to just go to the first bank.
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  You think of, you don't have to go to the person.
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  Well, you know, the, the, the realtor said, I need to use this person,
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  or, or I gotta use this person.
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  I don't agree with that at all.
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  I'm gonna tell you right now.
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  Every time I've went and bought a home, I've actually had lenders competing.
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  So go find two or three different reputable mortgage lenders.
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  Now, I'm not saying to go through the whole process with them because you
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  don't want them pulling credit and all that kind of stuff, but look at banks.
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  Look at credit unions.
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  Go to a mortgage broker.
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  Mortgage brokers are great for this 'cause they can shop around and get you
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  the best interest because the truth is.
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  Interest rates and fees can vary significantly, but if you shop around,
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  you're going to get the best terms.
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  And like I said before, get pre-approved.
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  This is a vital step.
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  Go through that pre-approval process with at least one lender.
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  So once you've narrowed it down to, I'm gonna pick these three lenders,
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  I like their rate and terms, I like their service, all that kind of stuff.
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  Then get through the pre-approval with one of those lenders.
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  'cause they're gonna review your financial information.
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  They're gonna look at your income, they're gonna look at your assets,
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  they're gonna pull your credit, and they're really gonna tell you again
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  how much you qualify to borrow.
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  And as I talked about two shows ago, just because they tell you you qualify
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  for something, we gotta do a gut check again and go back and think, am I
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  comfortable borrowing that much money?
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  Because like I said, just because you qualify for a certain amount doesn't
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  mean you should borrow this much.
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  So stick to what you can comfortably afford.
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  Like we talked about in episode one 70.
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  And here's the thing, that pre-approval letter shows sellers
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  that you're a serious buyer.
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  And to be honest with you, most sellers aren't even gonna entertain even showing
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  you the home or even giving you an opportunity to make an offer until
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  you've got that pre-approval letter.
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  Now you're asking Ralph, okay, this all sounds great, but why does this help?
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  Because it fights that struggle and that stress of feeling
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  lost in the mortgage maze.
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  And that can be a lost.
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  I remember when I bought my first house, I was like 21 or 22 years old,
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  I bought this townhouse and I remember I kept a book about this thick of all
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  the documents that I had to go through.
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  I mean, the thing must have been three inches wide.
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  'cause it was like, okay, ask this question.
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  Ask this question.
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  It's important because it's real easy to get lost in that mortgage maze.
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  I'm gonna encourage you to educate yourself because it's going to replace
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  that confusion and you're gonna have a better understanding what's going on.
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  As I encourage shop around, could save you thousands of dollars
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  over the life of the loan.
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  Get that pre-approval letter 'cause that's gonna streamline the process.
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  And in the end, all of this puts you in a more informed and empowered position.
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  Let's pray together now.
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  Father God, we just thank you for guiding us in managing our finances.
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  And Lord, we confess to you right now that the mortgage process feels complex and
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  it can bring significant stress to us.
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  So we, this ask that you would grant us clarity and grant us understanding as
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  we learn about the different loan types and really shop around for lenders.
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  Show us what's out there Lord, and lead us to reputable individuals
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  who can offer that wise counsel that your Word talks about.
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  Guide us in that pre-approval process and help us to remember what
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  we truly can afford comfortably.
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  Grant us peace and grant us wisdom, Lord, in securing a mortgage that aligns with
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  your plan for our financial wellbeing.
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  And we ask this in confidence.
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  In Jesus' name, Amen.
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  Listen.
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  Don't let the mortgage maze intimidate you.
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  Many people have gone through it.
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  You can get through this as well.
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  Just empower yourself with knowledge.
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  Shop around wisely.
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  Get that pre-approval based on your comfortable affordability.
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  Because listen, you're taking intentional steps towards securing
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  your home financing, and if this episode has impacted you in a
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  positive way, I'm gonna encourage you to share it with somebody else.
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  There's a lot of people that are going through this process.
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  Maybe you share the last few episodes with them.
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  You can find resources and connect with the show at our website
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  that's at financially confident christian.com, and I've got a
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  special gift for you on your journey.
• 9:33
  For the first 100 listeners who go to financially confident
• 9:37
  christian.com/master, I'm gonna give you a free copy of my book.
• 9:40
  It's called Mastering Your Finances.
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  It's quick, it's a powerful redesign, is a starting point to really help you
• 9:46
  break that cycle of financial shame.
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  Step into confidence.
• 9:50
  Again, you get that by going to financially confident
• 9:53
  christian.com/master, and I'm gonna encourage you to
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  go get your free copy today.
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  Now, tomorrow we're gonna be talking about part of the home buying that
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  often surprises people and can cause some last minute stress, and that's
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  understanding and more importantly, preparing for those closing costs.
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  This has been a surprise to some people that I've worked with over the
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  years, so you don't wanna miss it.
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  So make sure you join me now.
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  Let's all go out there and be financially.
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  Confident Christians, you can do this.
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  I have confidence in you.
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  Have confidence in yourself.
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  Stay financially savvy.
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  God bless you, and you have a great day today.