Find a mortgage lender by putting together a list and then narrowing it down. Ask friends, co-workers, agents, and title people for referrals. Contact the lenders on your list and, after speaking with them, narrow it down to two or three you feel most comfortable with and ask them work up a GFE. Compare the GFEs side by side. Note the fees each lender is charging and the APR. Most [...]
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Most mortgage Web sites have prequalifying worksheets on which you can fill in your debts, income, and other financial data and get instant maximum loan amounts, monthly payments, and other loan data. Some of these sites also have helpful calculators that compute buying versus renting, home-owner tax savings, and amortization schedules.
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The next step is to assemble the paperwork you’ll need to make a loan application. Lenders need documentation verifying your financial situation before they can give you a loan commitment. To make it easy, you can fax or e-mail all or most of the information the lender requires.
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A lender who advertises a much lower rate than makes sense in the current market, hoping you won’t read the fine print. A loan officer who qualifies you for a higher loan than the income ratios covered in the last chapter. A lender, agent, or seller who suggests you sign two purchase contracts: one that represents the real intent of the buyer and seller and another higher priced one that [...]
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With a bi-weekly payment schedule, you make two half-payments per month. For instance, if your pay period is every two weeks, you pay one-half of the payment on the first of the month and the other half on the fifteenth. Most lenders offering this service require an automatic deduction from a checking account.
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