Home Purchase Tips

On of the most important factors when you're buying a new home is securing the loan. But before you decide on the loan, you should decide on the lender. You want to look for a stable, established lender with a reputation for good service and customer satisfaction. A good rule of thumb is this: if you don't feel comfortable with a company, don't use them as your lender. Additionally, look for someone in your area or at least within driving distance; its much easier to discuss a loan and all the particulars if you can see the loan representative in person.

  • Shop around for your lender and for the best rate
    Most lenders offer an initial consultation fee for free, so you can talk to a representative and find out your options, get a quote, and generally familiarize yourself with the company. This is an excellent way to compare quotes as well as customer service; chances are if they're nice and competent in the beginning, they'll remain so all the way through.
  • Make a list of potential lenders and compare them
    An excellent way to prepare for a conversation or meeting with a potential lender is to make a list. This list should include questions you are going to ask them, as well as questions they'll probably ask you, such as your income, date of birth, full name, social security number, and more. As for the lender, you should include the company's name and general information, the type of mortgage they offer, the size of the down payment, interest rates, closing and opening costs, prepayment options, and interest rate.
  • Call all the potential lenders on the same day
    Make sure you call all the providers on the same day that you make the list and are doing your research. Interest prices fluctuate daily, and this will mess up your calculations.
  • Read everything you're given down to the fine print
    Read everything, no exceptions.
  • Be honest and straight forward; present your debt history accurately
    When you fill out the application, be honest, accurate, and truthful. Don't ever lie, as this has s tendency to backfire. Tell the lender about your good credit and bad credit, who's going to live in the house, what your assets are, and whatever else is on the application.
  • Check with the lender about the documentation you'll need to complete the application
    When you go in to fill out the application, you'll need a number of things. These include proof of income, the property or address of the home you want to buy, tax forms, credit report, and recent bank statements. These are general items; check with your lender for a list of specific items you need to complete the application.
  • Be patient
    The application process can take over a month to complete, and they'll call you after they've made a decision.
  • Know your rights as a borrower
    The Federal Truth in Lending act ensures that you as the borrower are protected. The lender must disclose everything to you, including any 'hidden' fees and costs. If he fails to do so, you can either negotiate for those payments to be subtracted from your account or opt to pull out all together