Before you start shopping for your dream home the very 1st step is finding the right mortgage lender for YOU! You’ll want to have your pre-qualification ready so when you find that right home you’ll be ready to meet with your agent and write a qualified offer for your agent to present to the seller. While the internet is overwhelming with banks and lenders it is very important to find out if the lender is a direct lender with in-house processing and underwriting.
Anything less should be unacceptable to you as the buyer!
Insist on getting a written Good Faith Estimate with 24 hours from any lender you contact. This estimate will show all the detail charges that will appear on your Buyers closing disclosure settlement that will be issued to you 3 days before closing.
As buyers, here are a few questions you should be asking when applying for your mortgage:
- What are the rate and points that you’re charging for this mortgage?
- What is the APR?
- What are all the fees you’re going to charge me between now and settlement?
- Is there a pre-payment penalty?
6 DON’TS WHEN PURCHASING A HOME!
- DO NOT! Deposit cash into your bank accounts or move money around.
- DO NOT! Make any large purchases (i.e. new car or furniture)
- DO NOT! Co-sign other loans for ANYONE!
- DO NOT! Change bank accounts.
- DO NOT! Apply for new credit. (unless advised to do so by your lender)
- DO NOT! Close ANY credit accounts.
Normally 5 – 10 days before your settlement a lender WILL pull your credit to make sure your balances have NOT increased from the time you made your mortgage application. If balances HAVE gone up, or any new credit appears on your report you may no longer qualify for the mortgage.
** ALWAYS discuss with your Loan Officer before doing anything **
Compliments of Wendy Lewers of Atlantic Home Loans.