| You're ready to buy a home. How do you go about | | | | rate by paying more points. The more points you pay, |
| securing a loan for your home? Here are nine steps to | | | | the lower your interest rate. |
| getting your home mortgage set up. | | | | 4. Provide required information and documentation. |
| 1. Get your finances in order. Look at your credit | | | | Sometimes fees are paid up front, and the lender |
| reports. Sometimes mistakes are made and need to | | | | sometimes requires that appraisals, credit reports, or |
| be cleared up. Get things in order before you apply for | | | | processing fees be paid at the beginning. |
| a mortgage. Credit reports are important in how much | | | | 5. Determine your needs and wants in a property. |
| you can borrow and what interest rates you are | | | | Then find something that best fits your needs and |
| offered. | | | | wants within your budget. |
| 2. Find a lender. Ask around to get referrals from | | | | 6. Home inspections and other tests of the property |
| people you know, from real estate agents, your bank, | | | | are completed. Sometimes problems must then be |
| or others whom you trust. Read up on the basics of | | | | taken care of. |
| mortgage lending so that you are somewhat | | | | 7. Review your loan papers. About a week before |
| knowledgeable when you go to talk to someone. | | | | closing, paperwork should be ready for your review. |
| Compare costs and fees when choosing one lender | | | | Make sure the loan matches the original quote you |
| over another. Sometimes fees and rates can be | | | | were given. |
| negotiated. | | | | 8. Deposit your down payment funds into your |
| 3. Fill out a loan application and get pre-approved. | | | | account 5-6 days prior to closing. Find out if cashier's |
| Knowing how much you can afford to buy really helps | | | | checks are needed at closing or if personal checks will |
| out as you search for that perfect property. Get an | | | | suffice. Attend the closing and sign the papers. |
| estimate of closing costs from the lender. The lender is | | | | 9. You are now a home owner! |
| required to provide you with this information within 3 | | | | You will come across problems that are best handled |
| days of receiving the loan application. Be sure you | | | | by your local lender, real estate agent, closing agents, |
| know what type of loan your lender is offering | | | | or others helping you with the loan. Don't hesitate to |
| including rates, terms, and any special information like | | | | ask questions so that you stay informed and |
| insurance or penalties. Consider lowering your interest | | | | understand what is happening all along the way. |