Shopping for a Lender
The most important step in the home buying process, if you aren’t paying cash, is securing a loan. You’ll need to shop for a lender, compare loan products and get that all-important loan preapproval letter.
Today we’ll take a look at how to go about choosing a lender.
Myth number 1
The biggest myth among homebuyers is that the lender with the lowest interest rate is the best lender. Here is why this may not be the case:
Jumping online or on the telephone to find lenders with the lowest rates, then, isn’t a smart first move. Start with the mortgage department of whichever bank or credit handles your personal banking. Ask about the APR; this figure includes not only the annual percentage rate on the loan, but the points and fees as well.
Then, contact a mortgage broker for the same information and compare the two quotes.
What else to look for
When you call or visit lenders, look into the following aspects of their loan products:
If you’re going after a conventional loan, ask how much you’ll be required to pay as a down payment and, if private mortgage insurance is required, how much the monthly premium will be.
The lender is required to supply you with a Loan Estimate form within three days of applying for a mortgage. This form itemizes the loan’s terms and fees and, since all lenders use the same form, it is a handy way to compare loans between lenders.
Blog Archive2016-09-16 16:23:17
The Home-Buying Wish List
3 Common Home Buying Myths
3 Tips for Attending Open Houses
2 Things to Consider Before Buying a Townhome
4 Tips for Home Buyers with Boats
2 Tips for the Luxury Home Buyer
What is a Buyers Market?
Writing a Strong Offer
3 Important Aspects of the Purchase Agreement
3 Things to Know about Buying New Construction
2 Things to Know about Home Inspections
What to Look for in the HOA Documents
HOA? Beware the Rules and Regulations!
Everything you need to Know about Home Warranties
4 Tips to Close Quickly on a Home Purchase
Your Moving Checklist
Buying your First Home? Avoid these 4 Common Mist
Tips for Buying a Fixer-Upper
First Time Homebuyer: Steps to Success (Step 1)
First Time Homebuyer Steps to Success (Step 2)
First Time Homebuyer Steps to Success (Step 3)
How much can you afford?
The Essential Real Estate Glossary
What is the Earnest Money Deposit
Home Appraisal Basics
Click here to see ALL articles.