Getting Approved For A Loan Is A Good First Step.

You are thinking about buying a home or ready to by one, getting approved for a loan is a good first step.Talking to a mortgage company and making application for loan approval can make the buying process much easier.You know for sure you can get a loan and what approximate funds you will need for down payment and closing cost.With this information you can be more confident to make a decision on the right house for you. You will also be in a much better negotiating position with a seller because you can assure the seller that they will not have to worry about your getting a loan.

Choosing a lender to work with can be an important decision. There are many options when looking to find a lender. The internet is loaded with options the you can check rates and even apply on line. In most areas there are many good local lenders that you can talk with to check rates and get advice. In my career I have seen both work great but have seen the most delays and problems with companies that are online. Many of the online mortgage companies can get low rates but because they are getting quotes from many companies in a lot of cases, they do not have control of the process. Even though the approval process may be very quick, the problems come when you find a home and the rest of the process that starts after a home is found can be a very inefficient process. Local lenders can have the same problems but if there are problems a local lender usually has more to gain to get the problem solved. Most interest rates are fairly competitive so making sure you can get good service is just as improtant.

How can you find a good lender? As with any service get recommendations from people who have recently gone through the process. REALTORS  can give good advice on lenders and their service.Getting the loan closed without delays is very important to REALTORS, so most will know who they have confidence in getting the loan done at a good rate with good service. If you find a good rate somewhere and want to go with another lender that you have confidence ask them if they can meet the rate, a lot of times they can.

Another point when comparing rates is that you need to not only look at the rate of interest but look at the amount of money required for closing. Many times a lower interest rate at one place maybe because of higher closing cost to make up for the rate reduction. A lender should give you a True In Lending statement which will estimate these cost. This is the only way to compare rates that you are quoted

This may sound complicated but it a very important part of the process. With the advice of an experienced real estate agent and the right loan officer it really is not that big of a deal.. If done right it can make the buying process be much smoother.

This is the first of a series of weekly blogs discussing the buying process.