5 Steps to Financing Your Home
Remember your lender decides what you can borrow, but you decide what you can afford. Lenders should take time to educate you about the pros and cons of different types of loans.
Make sure your lender provides you with a Good Faith Estimate (GFE) within 3 days of applying for a loan. Preferably the lender will give you a GFE right away and it should be accurate as long as you are purchasing a home, for the sales prices they’ve quoted.
Beware of junk fees. A good lender will disclose all costs i.e. costs, fees, points and payments associates with your loan. This is not an area where you want any surprises.
Your lender should be willing to take the time to explain the process:
1. How much down payment you’ll need, if you need one
2. Closing costs, the difference between closing costs and pre-paid
3. What Private Mortgage (PMI) is or Mortgage Insurance Premium (MIP)
4. Difference between Conventional & FHA loans
5. Do you qualify for State Bond or other, assistance loans?
Getting pre-approved takes some time, the lender needs to run your credit report, verify your employment & income. Remember, you want to have a cushion for unexpected costs and future opportunities from updates to repairs to gardening.
Find a Buyer’s Agent, or start your Home Search with us now!
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