If you happen to be shopping around for a mortgage, it is very important that you first take the necessary time to do your homework.

When I say homework, I am talking about research. There are so many loan programs out there that it is easy to get lost in all of the mortgage jargon that people in the industry love to use on you. Not to mention of all of the paperwork.

By the time you get to the table, you will have a mound of paperwork approximately six inches high filled with words and terms that most people in the business don't even understand.

The mortgage industry is filled with all kinds of pitfalls that you can find yourself sitting in. This is why taking your time and doing research is key to purchasing a home. Research can literally save you thousands of dollars in closing costs and interest charges. So don't rush into it!

For starters you will want to contact a Realtor and a lender.

When choosing a Realtor, ask lots of questions. Make sure they know their area market and can help you meet your objectives as a home buyer.

There are many ways to choose a lender, but for starters, here are just a few ideas to get you started.

The traditional way would be to walk into your neighborhood bank and speak with a loan officer. If you don't like that idea, you might consider filling out an on-line application (www.JShambley.ApexLending.com).

A mortgage broker will evaluate your situation for you, and then shop around for a lender with the best program or rate, or both.

Remember, just because you have a Realtor and a loan officer doesn't mean you should stop doing your research. At this point in the game, you should be doing even more research. This way you will have an understanding as to what your Realtor and loan officer are talking about when they start speaking their language.

You will also want to find out what your credit score is. Most likely your loan officer will do this for you. Your credit history plays a large role in the loan approval process, and it will also affect your interest rate.

If you already know that your credit is a little bit challenged, than you might want to start out using a broker. Most brokers work with about two hundred lenders, so they would be your best bet as far as finding the best rate and term, as well as, a bank that deals with challenged credit.

When you are purchasing a home, you will hear things such as debt to income, appraisal, and loan to value. I'm sure you may have heard these terms in the past, but do you know what they mean, I mean, do you really know what they mean? Inside and out.

I cannot stress enough the importance of doing research before buying a home. It is such a vital component when it comes to saving money. Use the internet, use the library, and most of all, use your Realtor and loan officer. Ask them as many questions as you possibly can, learn from them!

Your home will most likely be the largest financial transaction you will ever make, so when you come to making your decision, make sure it is an educated one. Good luck!


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