Things to Know

Purchasing a new home can be exciting…when you move in! But before move-in day comes, logistics take the front seat. In order to even begin to look for your dream home, you need to know how much you can afford to pay. To begin this pre-approval process, you need to investigate different mortgage lending sources to see which one offers you the best deal. Here are four easy steps to take when searching for your mortgage.

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1) Know Your Score! - And no, I'm not talking about the score of the Super Bowl. As it applies to mortgages, you must know your credit score. Your score is determined by many different factors such as making payments on time, opening new lines of credit, and any negative marks you may have on your record pertaining to financing. Once you know that you have no liens, judgments, or collections (except for medical), then you may proceed to the next step.

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2) Which mortgage is right for me? - You next task to do when shopping is to do your homework. You need to go into this process knowing a little bit about what type of mortgage you are looking to use to purchase your home. Do you want a traditional mortgage product such as a 15- or 30-year fixed-rate mortgage? Or would you like to pursue a nontraditional mortgage product such as an adjustable-rate mortgage (ARM) that fluctuates throughout the life of the loan? Do you need a product that offers down payment assistance? All of these factors need to be considered before moving on to step 3.

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3) Who's your lender? - The lending sources available when purchasing a home are plentiful. You can choose to go through a bank or find an independent lender who works through one of the big lending corporations like Fairway or LeaderOne Financial. It is important to note whether they have special offers going that pitch incentives to buyers or how involved they are in the buying process.

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Also, it is important to browse the Internet for any reviews you can find on lenders you are interested in utilizing for your loan. Different lenders specialize in various programs such as FHA, VA, Homes for Heroes, or NHF grant programs. Depending on your specific situation, it is important to find the best person for the job.

4) Additional costs? Nah, I can negotiate! - Remember, each lender works for you. Each one needs your business to keep on going strong. You have the upper hand in your transaction and this means checking to make sure you are getting the best deal possible. Double check the lender's fees and make sure you are well aware of any extraneous costs to be charged before you begin the loan process. Along with that, make sure you are confident in that you can always negotiate the terms with your lender.

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Contact me today for more tip and information and you'll be well on your way to finding an awesome lender to finance your dream home.

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