1. Decide on at least three lenders to get a mortgage quote from. Make sure to interview all three lenders within a three-week time period, this will make sure your credit score is not lowered because someone is pulling your credit. The credit agencies want you to look at different lenders because it is a big purchase so they will not hit your credit with negatives if you are in that three-week window.
2. Talk to each loan officer, build a relationship with them, they are potentially going to give you the money to buy your dream home. If they like you it will go a long way and might help you out if you need some additional help.
3. Make sure to get a loan that is aligned with your goals of buying your home. Work with a professional Realtor to help you create your goals before you purchase. If it is a short-term purchase 3 to 5 years you would want to get a loan that best represents a short-term purchase. If you are a long-term buyer, the loan should represent that type of purchase.
4. Each lender you meet with will provide you with a loan estimate, this is what they charge, their rates, what type of loan they think is best for you, and the terms of the loan. It might have some different options with loan type or down payment amounts, but it will give you a clear understanding of what they are offering you. If you do not understand what they are offering like loan cost, rates, type of loan, down payments or other items then it might be a good idea to move on. Understand the money part!
5. Always ask your lender these questions in the beginning.
1. Will they read the Residential Purchase Agreement (Your offer to the seller)?
2. Do they follow the dates on the Residential Purchase Agreement from start to finish?
3. Are they available after 5 pm and weekends?
4. If they are having delays will they communicate to you and your Realtor?
5. If they cannot get something completed will they communicate to you and your Realtor?
You might think these are odd questions but the answer your lender gives you will give you an insight if you will close on time or close on the purchase.
6. The lender will be asking you for documents in the start of your loan process and often they will be asking for documents throughout the process. Make sure to provide them to the lender in a timely manner, without some documents they cannot move forward with your loan. They will not ask you for a document unless they need it so don`t get mad if they are asking, they need it.
7. Do not make any large purchases until you have closed on your new home. If you are not sure to buy it or wait, call your lender to discuss.
8. Secure your pre-approval in the beginning, then make sure to sure your loan.
YOU DID IT!!!