For most Americans, buying a home - is the largest and most desirable purchase in your life. If you are not yet a millionaire, and you do not have a rich uncle, then you need a home purchase loan (called a mortgage). Get it not very easy. Therefore, below we explain how to properly approach the home buying, and how easily and quickly arrange the loan.
Choosing a lender
Before you start to look for a house, you must determine the amount that a bank or other lender will assign you a home purchase. It makes no sense to spend time searching for a suitable home for $ 400,000, then if it turns out that the bank is willing to assign you a credit for all 250,000.
The lender must choose carefully, so spend some time searching for relevant information. Ensure the stability of the financial condition and in good standing the alleged creditor. Read the terms of the loan. Try to avoid "substandard» (sub-prime) lenders, since the interest rates they are higher. Once your list contains only the strong companies with excellent reputations, look what a lender who provides loans at lower interest rates. Even a difference of less than one percent can save you thousands of dollars.
Traditionally, banks engaged in lending, so start your search with them. Interest rates on bank loans are usually not high and the service is very good, many banks have a mortgage department, whose officers escorted the entire home buying process. In this case, a bank clerk usually serves clients in person from the time of treatment in the bank before making a purchase.
The second acceptable option of obtaining a good credit - an appeal to the mortgage broker. The mortgage broker must have an excellent reputation and long experience in mortgage lending. The advantage of brokers to banks is that they typically provide a wider range of additional services. In addition, brokers are very knowledgeable about what the local or national financial institutions offer the most favorable terms.
Credit ratings, a preliminary assessment and preliminary examination
After selecting a lender begins the process of determining the possible value of the loan. It would be nice in advance to assess their creditworthiness. This can be done at your bank or through the relevant online service. If your credit rating (credit score) is high, then you can get a larger loan and may pay less interest. Knowledge of one's credit rating will allow you to bargain for lower interest. Although, if your rating is not very good, you take time to pay off existing debts and improve their creditworthiness.
Before you go to a lender, check the list of documents that will be needed to assess your financial condition. To determine the possible amount of the loan lender know your total household income, check the tax records, property, availability of debt, age and other factors.
At your request, the lender can give you hands on a document indicating the amount of possible loans. This is a preliminary estimate. It will determine the maximum amount of money, you can count on. The presence of pre-assessment dramatically increase the chances that your offer is accepted by the seller of real estate. Upon receipt of the preliminary assessment can begin to look for a suitable value for the house.
Before placing your order by credit you will have to undergo a full scan. To do this, the lender will hold a formal assessment of your loan and the financial condition and give formal permission for a specified amount. Get this amount you can as soon as you have the correct version of the home.
Realtors and real estate
Having an idea of the maximum loan amount, you can begin to search for homes. Here without a good estate agent will not do. Of course, you can manually browse for sale of real estate on the Internet, but it is better to use the services of a specialist. Remember that a realtor should be licensed. A good real estate agent should have a thorough knowledge about the state of the housing market and on the most profitable offers you are interested in the region. It should also be able to help you through the bureaucracy of the shopping cart. For their services the realtor gets a commission, depending on the amount of the transaction. As a rule, the amount of commission included in the total purchase price, and usually it pays the seller.
To find a good realtor, start with the advice of friends, colleagues and family members. If this is not possible to obtain advice from a famous commercial realtor. Commercial real estate agents do not work with the housing stock, but can usually recommend a good specialist, working in the housing market. You can also seek advice and help of the National Association of Realtors.
Author: Glen MakMehan
mortgage in the U.S.