How to Find the Best Home Financing in Today's Market

Step-by-Step Guide

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   Step 1: Determine your loan needs and desires.

   When do you need to close your loan? What aspects are most important and in what relative order? Is a 30 year term most important? Or is payment? Rate, program, loan amount compared to the homes value/purchase price, secondary financing, your monthly obligations compared to your monthly gross income (DTI=debt-to-income ratio), prepayment penalty, primary residence, investment property, ...
   
   There are many factors that determine needs and desires.
   
   Please be armed with all this information prior to speaking with someone, so that you can focus on discovering how well the loan agent is listening to you and desiring to help you.
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   Step 2: Research online to gain understanding of where rates are at the moment and to fill in any personal knowledge gaps.

   Do your due diligence and prepare yourself.
   
   Information online is free and plentiful. ,,, They all must have a good record and sufficient length of membership. , Do not judge them by the "trappings" of success, clothes they wear, car they drive, furniture of their office.
   
   The person you choose should be someone you like and that likes you.
   
   Someone you will trust with the largest financial investment of your life and with all your personal information; hopefully it is with someone that was recommended to you. ,, A written preapproval is one that you can obtain having given no documentation to the company and they have not run your credit. , From this you can see your score which each loan agent needs to determine an approval.
   
   If you let one run your credit, many individuals will tell you your score is lower than it is or will show you only the lowest so that you can not shop on them with accurate information. , Non-recurring closing costs or NRCC's are the fees to your loan.
   
   This is where the lenders and loan agents make all their extra money.
   
   This is where you need to require from them a written and signed declaration that if the fees go over the amount of the original Good Faith Estimate, then they are liable to cover the difference from their proceeds.
   
   Doing this will help you compare "apples to apples."
   
   For many of you it will be whomever comes in with the lowest rate and same term.
   
   But for those of you that are looking ahead, you will choose the person that you can meet with, whom you have built a mutual relationship, where both stand to lose and gain in the community by how well each manages their relationship.
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   Step 3: Ask those whose financial judgement you respect if they can recommend someone personally.

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   Step 4: Find five and interview them by telephone by allowing them to ask the questions and answer yours.

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   Step 5: Check the BBB for each and check each out with their states regulatory agency.

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   Step 6: See three in person and judge them by how attentive they are to your needs.

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   Step 7: Investigate at least two companies

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   Step 8: that have no local representation

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   Step 9: via the telephone after having researched the companies' records with the BBB and their states regulating agency.

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    Step 10: Choose three to seek written preapproval and let them each know that they are competing.

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    Step 11: Obtain your credit report for free from each credit reporting bureau at least once a year.

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    Step 12: Demand a Good Faith Estimate and a written guarantee of the non recurring closing costs to come with the written preapproval.

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    Step 13: Choose the proposal/loan officer that seems best for your situation.

Detailed Guide

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