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Need A Mortgage? 3 Easy Steps To Get Started
Need a mortgage? The first step to owning a home is often the most daunting--shopping for a mortgage. The days of comparing a few rates among a dozen or so savings and loan companies is gone, replaced by a myriad of loan types available through thousands of banks, mortgage brokers, credit unions, and finance companies. So, how can you begin to navigate the sea of options? Education is the beginning point that is sure to get you to the finish line. Information sources are as plentiful as the number of lenders. In addition to sites like Lender411, there are books, articles, seminars and workshops as well as professionals like financial planners, real estate agents, and mortgage brokers. To give you a head start, we've broken down the mortgage process into three simple steps. Step 1: Review your finances Determinine how much mortgage you can afford. Some lenders can approve you for the maximum loan amount you qualify for, which can be more than you need. Make sure to take stock of your income and expenses, both current and projected, to discover what you can manage each month without strain. Don't forget added costs such as taxes, insurance, homeowner association dues, and other related expenses. Step 2: Loan Shopping Once you're ready to shop for a loan, you'll have two choices to go through--either a mortgage broker or a direct lender. Direct lenders will grant the actual loan, while brokers are intermediaries who search through many different lenders to find an appropriate match for you, similar to a real estate agent. Using a broker as the middle man can save you a lot of legwork and research, and if you're short on time, the expense of a broker can be worth it. If you do choose this option, always make sure to go with someone who is recommended and has been in the business a substantial amount of time. Step 3: Apply for a loan Applying for the mortgage is the simplest part of the process, provided you have all your documentation in order. You'll need to show proof of stable employment, income history, assets, and any active loans. The lender will run your credit report, which is a huge factor in your final loan interest rate. Once all the paperwork is in order, the lender will then hire a professional appraiser to ensure the value of the home matches the purchase price. Ready for more education? There's a wealth of mortgage articles on Lender411 you can use to build you knowledge base and get you the home you want! |
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