| Applying for a mortgage can be an extremely | | | | investing. Mortgage brokers can usually shop your loan |
| confusing thing to do, especially for first time | | | | around with hundreds of different lenders and obtain |
| homebuyers. What bank should you work with, who | | | | wholesale rates offering the best of both worlds, |
| has the best rate, who can you trust to do the best | | | | however which one should you use. In this step, you |
| job for you, should you use a mortgage banker or a | | | | should look at your newspaper over the weekend to |
| mortgage broker and many other questions are at the | | | | see if any banks are having any rate specials for new |
| forefront of many consumer's minds. The first thing | | | | mortgages, if so try applying for a mortgage with them |
| that you need to do before you apply for a mortgage | | | | as the first company. Next, you should look into a |
| is to sit down by yourself or with your spouse and | | | | mortgage bank such as a Countrywide or Quicken |
| figure out a budget along with your present, short term | | | | loans or somebody and see what they can offer you. |
| and long term financial goals. This way you will have a | | | | Finally, contact a mortgage broker in your area and |
| better idea as to what type of mortgage will be best | | | | see what they have to offer you as well. If you have |
| for you along with a very accurate idea of how much | | | | shaky credit the mortgage broker will be your best |
| of a payment you can afford to continue living the | | | | option. You can also ask family, friends and or |
| lifestyle you are accustomed to. | | | | co-workers for recommendations as to who they |
| The second step in applying for a mortgage is to | | | | have used in the past and if they were happy with |
| figure out who you should work with, a traditional bank, | | | | them. |
| a credit union, a mortgage broker, a mortgage bank, | | | | Finally, after you have found out who you would like to |
| etc... Who to choose can often be a difficult choice. | | | | work with you will need to provide them with income |
| Banks traditionally only have one set of underwriting | | | | documentation, asset verification, homeowners |
| guidelines and they are usually very picky about who | | | | insurance information, purchase agreement (if |
| they approve for mortgages. Mortgage banks will | | | | applicable) and some other documents may be |
| generally be a little less strict than normal banks, | | | | necessary depending on your situation. The mortgage |
| however they usually will offer retail prices on their | | | | loan process can be done in anywhere from as little |
| rates so you may not always be able to obtain the | | | | as a week up to 3-4 weeks on average depending on |
| best interest rate that is available. Credit Unions can | | | | whether you are refinancing or buying a home and |
| many times offer financing on things that mortgage | | | | how long your purchase contract states you have until |
| banks and traditional banks can not, however they do | | | | closing. Therefore, shop around with a coupe of |
| not always provide the best rates for what they offer. | | | | different lenders and brokers, ask family and friends |
| I do highly recommend considering becoming a | | | | for referrals, and sit down and prepare a budget along |
| member of a credit union though because they do | | | | with your financial goals in order to begin the mortgage |
| have some very aggressive items that may be worth | | | | application process. |
| looking into for all different types of financing and | | | | |