Buyer's Guide - Page 7

The Loan Process Financing your home purchase Unless you are one of the rare few able to pay cash to purchase a home, you will need to find the right lender and the right mortgage product. There are many different kinds of lending institutions that offer a wide range of loans and special programs. You should diligently research your options and shop around for a mortgage with as Here are the main steps to securing a mortgage that’s right for you 1. Educate yourself about your options. There are myriad loan types and programs available through thousands of banks, finance companies, credit unions, and other assorted lenders. Not surprisingly, there are just as many sources of information about mortgages. Websites like Realtor.com, as well as books, news articles, seminars, mortgage brokers, lenders, and knowledgeable real estate professionals all can be of help. Make use of them and get more than one opinion. much care as you would take when searching for a home. 2. Be realistic about your financial situation. Ask yourself how much mortgage and down payment you can really afford. What do you have to give up, not just every month, but maybe for years and years by increasing your debt? Be sure to carefully weigh the risks and opportunities. Along these lines, Realtor.com provides you with a variety of loan calculators that will help you determine your regular monthly payment based on your projected down payment, the loan principal, the interest rate, the mortgage term, and so on. Additionally, be sure to factor in all related taxes, insurance, improvements, homeowner fees and all other potential costs into the equation. Note: some lenders will qualify you for the maximum they are willing to lend which may be more than you can truly afford, given all your other responsibilities. • Make a list of your monthly expenses • Project your other financial commitments during the life of the mortgage When shopping for a loan you should consider two main sources: direct lenders and mortgage brokers. Direct lenders have the money available and make the decisions, but they have a limited number of in-house products to offer. Brokers are intermediaries who charge the lender a fee, who can provide you with loan options from many sources, and can often save you money overall. Either way, consult your real estate professional for advice and perhaps some beneficial connections. HOME BUYER’S GUIDE www.HoulihanOmalley.com 914.337.7888 7