Getting
a Loan
 Here
is a checklist detailing the financial information
you’ll need to compile:
- Two years of W-2s, or personal tax returns for
self-employed buyers
- 12 months' rent receipts or canceled checks
- verification of income (including alimony or
non-wage income if applicable)
- Last 3 monthly bank statements
- A complete list of creditors and debts
- A detail of assets such as cars, furniture and
personal property and other items that clarify
their individual credit picture.
- When pre-qualifying for a loan, do not obligate
yourself to a particular lender.
- Check out potential down payment grants as well
as special programs that can eliminate closing
costs or mortgage insurance premiums
- Never pay a finder’s fee or an origination
fee up front.
- Make sure fees are payable only when a loan is
closed under the terms and conditions in the "Good
Faith Estimate"
- That "Good Faith Estimate" should be given to
you within three days after you complete your loan
application. It will disclose all of the finance
charges involved in your loan.
- There is a big difference between a "no cost" loan
and a "no up-front cost" loan. In a so-called "no
cost" loan, all expenses are paid out of the commission
paid to the mortgage broker by the loan wholesaler.
They not added to the loan balance or paid by you
at closing. In a "no up-front cost" loan, there
can be numerous fees and expenses built into the
loan balance.
 When
applying for a loan pay only for your credit report
and appraisal up front. All other charges should
be paid at closing. - Avoid junk fees. Lenders make money on origination
fees paid by you or by the loan wholesaler. All
other fees can be negotiated or eliminated altogether.
They include: application fees, document preparation
fees, processing fees, underwriting fees and other
such fees.
- Never buy credit life and disability insurance
from your lender. It is almost always a better
deal to buy a separate term life insurance policy
to cover all of your financial obligations.
- Never allow a lender to "bend the rules" to get
you a loan as in lying about your income, etc..
- Never agree to pre-payment penalties.
- Make sure all terms and conditions are in writing.
|
> How
to Buy
> Looking
for a home
> Inspecting
a home
> Pre-qualifying
> Closing |
