| 1) | Qualifying is the first step. Qualifying means how much money you may finance (borrow) in order to purchase a home. Reviewing your income vs. your debt load does this. Qualifying for a Mortgage Loan does not mean that you are approved for a Mortgage Loan. |
| 2) | When you are decided upon which Bank/Mortgage Broker you will work with, asked to be pre-approved. At this time you will fill out an application for your loan (Mortgage). There most probably will be a FEE involved in this process. |
| 3) | Ask your Loan Officer about the different types of loans (products) that are available. Go through each of them carefully, and select the one that will best suit your needs. Make sure you understand what points are. Inquire about all the fees involved. You should be provided with a Truth in Lending Statement. ASK FOR IT! |
| 4) | The fees you pay are: credit report, application fee, appraisal fee, and survey. They vary from lender to lender. Some lenders do not charge an application fee. |
ASK YOUR AGENT TO REVIEW THE TRUTH IN LENDING. IF THE LOAN ADMINISTRATIVE FEES ARE TOO HIGH, YOUR AGENT SHOULD BE ABLE TO INFORM YOU OF THIS.
| Things to Consider: | |
| RULE # 1: Once you decide to purchase a home and apply for a loan, DO NOT MAKE ANY MAJOR PURCHASES, until you have closed on the house. | |
| There are 100% financing loan programs available. Be sure that this is a good program for your financial situation. Will you be comfortable with those payments? | |
| There are several gift programs. What are the guidelines and do you qualify for any of them? | |
| Does the lender you have decided upon work with any of them ? | |
| Do you have funds for a down payment? | |
| Closing costs are additional fees | |
| Inspection fee is also an expense and is paid outside of the loan. If you are purchasing an existing home, it is highly recommended that you have the home inspected before purchasing it. It is a protective process and a good negotiating tool. | |
Pre-approval is NOT a full loan approval. You may have conditions that lender requires you meet. In addition the Appraisal and Survey of the House you pick must also meet the Lenders approval.
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