You and your partner are ready to jump in with two feet and buy the house of your dreams but you have hit the ultimate road block; how do you get the best mortgage loan possible? Especially now with the mortgage lending crisis, there is no way mortgage lending will ever be the way it was. Will you be able to get the loan you are looking for? When applying for a mortgage loan, the funding can come from all over the country through a variety of lenders from primary banks to secondary lenders and even third party lenders. Where does one begin to know where and who to borrow from?
Back in the day, more than 90% of mortgages were in one form: the 30-year fixed rate mortgage, and that was how our grandparents and most of our parents bought their homes. Back then, there were not a lot of questions about how a home buyer would be able to purchase a home. Our parents and grandparents only needed to qualify for the mortgage and wouldn’t need to get extra financing. Times are different now and houses are drastically more expensive than they used to be. Several different steps have been added to the basic question of “Do you qualify?” First of all, you need to have good credit and that will allow you to just apply for a mortgage loan. The next important thing to do once you have established good credit is to do your research. Once you have found a couple lenders and filled out their loan applications, you wait to see what kind of interest rates you can get from each lender. Lenders are required to give you a report within 3 days of receiving your application.
But now, the Internet has changed everything about loan applications. The Internet has changed the way banks prescreen for loan lending. Now, lenders are linked to electronic loan origination systems able to prescreen applicants for loans in a matter of seconds, helping you and the lenders make loan lending easier and faster.
It used to be that if you even qualified for a home loan, you would have to wait days while a credit report was compiled and then several banks and lending houses would be notified via telephone or even snail mail to see who could get you a good interest rate loan. Now, all the long days and sometimes weeks of waiting to which lending house will give you the best loan is long gone. The day of the internet is here and loan prescreens are now instant.
Once you have received reports from several lenders, you need to ask each one of them about
Closing costs
Fees
Points
Appraisals
Insurance
And more
As much as you are ready to buy a home both mentally and financially, if you don’t do thorough research, you may find that you are paying ridiculous fines that could have been avoided. A house is one of the biggest investments you will ever make in your life- it pays to do your homework.
About the author:Melissa Peterman is a web content producer for Innuity . For more information about loan origination systems in the mortgage lending world, go to ZootWeb
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