| Getting A Home Loan |
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So, you're interested in getting a home loan (mortgage) for your dream home. To accomplish this, there are a few steps you need follow to ensure that you get a home loan more beneficial to you than to the bank. The first step is to order your credit report. There are three major credit reporting agencies, Equifax, TransUnion and Experian. You can do this online (quick and easy), via mail or since you are seeking a home loan, have your mortgage broker or banker order one for you in advance. Knowing what is contained in your credit report is very important. When evaluating your application for a mortgage, lenders use your credit report to help them determine your ability to pay off the mortgage you are applying for. Utilizing your credit report, lenders are able to determine to whom you are indebted, the timeliness by which you are paying your obligations and your total indebtedness. A good credit report assures the lenders that their risk in investing with you by granting you a home loan is minimal. By this I mean that they will feel more confident that they will get their money back and assures you that your mortgage loan gains approval. In fact most financial experts recommend that you to check your credit report regularly for errors and particularly before submitting applications for credit to lenders. It is not uncommon for credit reports to contain outdated information and/or errors which can cost you thousands of dollars more in interest or worse, cause the lender to deny you the home mortgage you are applying for. The next step in acquiring a home loan is to be aware of current mortgage rates and fees. Mortgage rates can fluctuate dramatically by both region and lender. Also, learn the terms lenders use for their different fees and take time to know the figures attached to them. Fees, like interest rates fluctuate both regionally and by lender. This is where you can save considerable money by reducing or eliminating some or all of these fees. You can typically find current rate as well as some fee information on line, by visiting area banks or in your local newspaper (best). The third step in taking a home loan is to know the various mortgage programs available. You will ultimately need to decide which mortgage program is best for you. Today, there are a multitude of programs and home loans available. There are fixed and adjustable rate loans, conventional and government backed loans, interest only loans as well as loans offering payment options. It would be wise to have at least a basic knowledge of these mortgage options in order to get the best home loan for your situation. Though there are numerous on line and print resources available to you for acquiring this knowledge, I recommend that you seek the advice of a mortgage professional. Since it is your intent to apply for a home loan, call a mortgage broker, banker or loan officer and schedule some time for a mortgage program review. I am certain that almost any mortgage professional wanting your business will be happy to sit down and outline the various available programs for you. The next step is to review the whole mortgage package. Aside from interest rate, other things to consider are the number of years you plan to stay in the house, type of home loan desired, the amount of down payment, monthly payments, mortgage insurance requirements, escrows for taxes and insurance, any prepayment penalties, the effects of extra principal payments and more. Remember, a home loan is a long term investment that requires a considerable amount of commitment and money. Lastly, once you have chosen the lender as well as the program for your home loan, you will need to gather together the documents required to obtain your loan. Typically these will include a completed 1003 Uniform Residential Loan Application, your credit report, verification of employment (2 years minimum), verification of rent/mortgage payments (2 years), verification of income (2 years IRS W-2's or tax returns) and letters of explanation for any negative items identified on your credit report (i.e. late payments, judgments etc.). Additionally, fees are often collected when submitting application for a mortgage. Some of which are application and appraisal fees. While other requirements and fees needed to be paid for your home loan application may vary from one lending institution to another. I sincerely hope that you find this information useful and above all helpful. However it is merely a guideline, your individual circumstance may (and probably will) differ in such that it might be easier or considerably more complicated. I strongly suggest and recommend that you speak with a mortgage professional. Feel free to bring this with you when you meet, use it to as a reference to prompt question and answer discussion. Remember...the more you know, the better equipped you will be to make the right decisions!! Liz Jarvis is Vice President of Heritage Mortgage Corp. of Southwest Florida a licensed mortgage lender. If you are interested in aquiring a mortgage, see her website at: http://www.heritagemtgcorp.com For Additional Free Real Estate Financing (Mortgage)information see: http://www.mortgageseekerusa.com For Free Real Estate information go to: http://www.realestateseekerusa.com Read more at: http://www.ArticlePros.com/finacces/Home-Mortgage-And-Refinancing/article-83002.html. |
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