Choosing your home loan
can seem almost as mind boggling as choosing the home itself. With
the wide variety of loan programs available, you'll find loans designed
for first-time home buyers, the self-employed, veterans and investors.
There are loans for buyers who have lower incomes, credit problems,
substantial or minimal down payments. There are new construction
loans, and bridge loans for those who purchase a new home before
selling their current home.
Since loan programs and fees may vary, you may wish to consult
more than one lender. Take the time to give each lender an accurate
picture of your employment history, income, debts, credit history,
available cash for a down payment, any gift funds from family members,
and the length of time you intend to live in your new home.
Ask each lender to recommend a loan program that will meet your
needs. Ask for an estimate of all fees and closing costs. Ask about
a "lock-in" program that offers protection against interest
rate increases prior to closing. Will the lender allow you to "re-lock"
if interest rates decrease before your closing?
Select an experienced lender with a reputation for on-time service.
A loan with the best interest rate may be worthless if the lender
doesn't get your loan approved by your contract deadline. Please
call me if you'd like names of established lenders who provide quality
service and competitive rates to my clients.
Start with your needs
Before you begin to explore your loan options, you will need to
take a close look at your personal plans for the future and at your
potential monthly housing budget.
The answers to these questions could greatly influence your best
loan option:
- How long do you plan to live in your home?
- Do you expect your income to increase during the coming years?
- Do you have a contingency budget for unexpected major expenses?
- Do you anticipate making major improvements in your home?
- Is it important to you to build equity rapidly?
- Do you know how you will benefit from the tax advantages that
home ownership offers?
- Is the home strictly for investment, whether rental or resale?
- What is the likelihood of a career change that would require
you to move — and therefore, to sell your home?
In addition to answering these questions, you also need to estimate,
on a monthly basis, the added costs of home ownership — from
upkeep and general repairs to planned major purchases, improvements
and homeowner association fees.
Pre-Approval
Choosing a Mortgage
Qualifying
Credit Cleanup
Refinancing
Loan Overview
What to Bring |
