If you are thinking about buying a home, one of the first things you should do is consult with lenders and mortgage brokers. Determine how much of a monthly payment you can afford and then find out approximately how much of a mortgage loan for which you qualify. Find out which lender or mortgage broker will get you the best rate. Tell them you are shopping around and it will encourage them to give you the best rate possible.
Ask a Realtor® (hopefully me!!) for a list of local lenders and mortgage brokers with whom they have had success. Quite often, I have had buyers tell me that they didn't know they could qualify for a home loan and thanked me for finding a lender who helped them do so. There are also local loan programs that have discounted rates and I do my best to stay aware of those special offers such as 1/4% up to 1 3/8% off the regular rate either for the first couple of years on up to the life of the loan. You will definitely want to get a lender in the city where the home is being purchased to eliminate funding problems at closing with out of city and out of state lenders.
While shopping online for lenders seems easy there are some things you should know. First, when you apply online your information will probably be sent to lenders who have paid a fee to get your application. They are going to add that fee on to the cost of your loan.
Second, out of town lenders frequently do not have funds at closing and closing has to be rescheduled. If you are waiting with a moving crew to help you move in immediately after closing, the last thing you want to hear is postponing the possession of your new home.
Third, sometimes with the online lenders a truth in lending statement is not provided up front and you don't know what extra fees will be added in to the cost of your loan. You have the right to see this document before signing any loan papers. Your local lenders will be happy to show you all the costs involved in getting your loan as well as add in insurance and property taxes if they are going to be held in escrow.
Once you are within 30 days of the time when you think you might be making an offer on a home, ask one of the lenders for a pre-approval letter. This will help the seller know you are presenting a serious offer. You do not need to go with the lender who provides you with the pre-approval letter. It pays to continue to shop around for a few days after making your offer to make sure you have the best loan and the best rate for your situation. You should also ask whether it looks like the loan rates are rising in the next few days or falling. If they are falling, you may want to wait to lock in the rate until the very last day possible. I have found lenders who are even willing to "buy down" the rate in order to get the loan. Send me an email if you have any questions or would like a list of lenders in Douglas County Kansas that I have found to work for the buyer in finding the best rate possible.
Thanks and "Don't keep me a secret--I'm never too busy for your referrals!"
Rob (FREE 2-10 Home Warranty with every home you buy or sell through me!!)
Rob Lang, CRS, ABR, ePro, GRI Realtor®
Places for Rent or Lease
http://www.kslease.com/Rob's Blog at
www.ActiveRain.com/blogs/langrobRealty Executives, Hedges Real Estate (three convenient locations)
(Serving Lawrence, Eudora, Baldwin, Topeka, Tonganoxie, Leavenworth, Kansas City, McLouth, Wellsville, Ottawa, Berryton, Tecumseh, more)
300 Rockfence Place, Lawrence, KS 66049
1037 Vermont, Lawrence, KS 66044
3300 Clinton Parkway Ct., Lawrence, KS 66044
785-393-2274 (cell) 206-339-3199 (fax)
langrob@sunflower.com http://www.letrobdoit.com/ for property searches
http://douglascountyopenhouses.com/http://ihaveaddresses.com/
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