| Buying a new home can be intimidating, especially | | | | can find rates as good as or sometimes even better |
| when it comes to getting a mortgage. There are | | | | than going directly to a bank. Brokers also offer more |
| hundreds of lenders all claiming to give you a great | | | | creative financing for people with complicated |
| deal, so it's hard to even know where to start. | | | | situations (former bankruptcies, collections, etc.) |
| The first step when looking for a mortgage is checking | | | | Once you get quotes, be sure to compare all the |
| your credit report. There are three agencies that can | | | | terms involved, including rates, points, fees, down |
| give you your credit report free, once a year. This | | | | payments and any other costs. The loan originator is |
| way you know exactly what is on your report and | | | | required to give this to you in the form of a "good faith |
| how to deal with it. You can also dispute incorrect | | | | estimate." |
| reports before approaching lenders. | | | | If you need help, there are calculators available online |
| If you find unfavorable information on your credit | | | | to determine how much you'll pay in the long run. The |
| report, don't worry just yet. If previous credit problems | | | | best way to get a good deal is to use the fact that |
| have a specific cause such as a medical crisis, explain | | | | you're looking for the best rate and loan program for |
| this to lenders you approach. The institution may not | | | | your specific needs. |
| hold it against you when determining the terms of your | | | | It has become easier and easier to qualify for a home |
| mortgage. If the problems are due to poor credit | | | | loan. In many cases, buyers can come in with |
| management, you are likely to be quoted higher rates. | | | | absolutely no money down, even if they have dings on |
| Before accepting these rates, ask lenders their specific | | | | their credit report. Gone are the days when home |
| reasons for your quote and as what steps can be | | | | owners have to save for a down payment. Interest |
| taken to improve the terms. Most loan professionals | | | | rates will be lower with a down payment, but 100% |
| want to help you fix your credit so that you can | | | | financing is the easiest way to get into your first home |
| eventually qualify. | | | | and take advantage of the IRS tax benefits of home |
| Once you've figured out your credit situation, it's time to | | | | ownership. |
| shop. Check with banks, mortgage companies, credit | | | | While it may take time and effort, you should be able |
| unions, and thrift institutions. You can also use a broker | | | | to find a good mortgage offer to buy your new home. |
| to check out several options and present them to you. | | | | Ask your neighbors, friends, and colleagues who they |
| Brokers have the ability to shop rates for you and | | | | used for their mortgage. Great referrals are the best |
| have access to hundreds of loan options. Often they | | | | way to find a mortgage professional you can trust. |