Three Steps to Getting a Mortgage
Mortgage hunt today is like finding your way through a maze. There are dozens
of loan types, hundreds of loan programs available through many of mortgage
brokers, bankers, lenders, finance companies, credit unions and with stock brokerage
firms.
Finding a suitable mortgage for you does not begin with an application. You
should first obtain mortgage information through websites, topical newspaper
articles, mortgage books, consumer seminars and workshops, financial planners,
real estate agents, mortgage brokers and with lenders available to assist you.
Then you should determine how your mortgage payment will fit your current budget
and, to some extent, your future obligations 15 to 30 years down the road.
1st step: Examine your finances and shop before you apply
for the mortgage. Decide on how much mortgage you can afford. Remember there
is related insurance, taxes, homeowner association dues and any other costs
rolled into your mortgage payment.
2nd step: When you are shopping for the loan, you have two
basic types of mortgage stores to shop. Direct lenders who have money to lend
and mortgage brokers, the intermediaries, who have many lenders from which to
choose. Internet brokers receive the smallest cut, sometimes none at all, and
can prove to be a real bargain when you are shopping for the loan. Mortgage
brokers are like real estate agents, make sure to go with someone who is recommended
and has been in the business a considerable amount of time.
3rd step: When applying for the loan, you should gather documents necessary
to prove claims you make on the application that will ask for information about
your job tenure, employment stability, income, your assets (property, cars,
bank accounts and investments) and your liabilities (auto loans, installment
loans, mortgages, credit-card debt, household expenses and others). You will
also have to supply additional documentation, including paycheck stubs, bank
account statements, tax returns, investment earnings reports, rental agreements,
divorce decrees, proof of insurance, among other information.
The lender will run your credit report to look at your FICO scores, which are
very important when it comes to rates and terms you will be offered. If the
lender consider you as creditworthy, he will hire a professional appraiser to
make sure the value of the home you want to buy is worth the purchase price.
|
