Getting a home loan is one of the biggest deals you’ll pull off. It’s easy to make expensive mistakes. We provide six ways you can make things easier.
Get Educated About Home Financing
If you haven’t bought a home in the past five years, and especially if this is your first time, you need to arm yourself with a basic education. Pay particular attention to information that is especially related to “people like you” who are in “similar circumstances.” Be aware! There are a bewildering variety of loan programs. Plan to spend some time on your education. Here’s a link to a government website that will get your home buying research started: www.hud.gov.
Get Educated About Your Credit
You can get at least one free credit report per year. Get yours and learn to read it. Then, learn how you can improve it. Get information about free credit reports.
Shop for a Lender
It’s hard for us to be objective here. We think Peoples Bank mortgage loan originators are the best in the business. So, far as we’re concerned, if you want the best loan officer in the market, you’ll want to find us. But, to be fair, it’s always a good idea to compare offers. So, visit at least two lenders and compare their offerings.
A good way to shop for a lender is to have a “pre-loan” conference with them. Explain to them your wants and needs in a home. Be candid about your financial standing, your savings, your debts, etc. Most lenders can do what is called a “pre-qualification” which is a non-binding analysis of how much home you can afford and what your monthly costs will be. The way you are treated in this preliminary meeting, whether you get lots of information delivered professionally and courteously, will tell you a lot about how well you and the lender can work together.
Consider Credit Counseling
If you’ve had some “issues” with your credit, a visit to a professional Credit Counselor is probably a very good idea. Handling credit is not easy. Some people have trouble getting the hang of it. If that sounds like you, then a little professional help is in order. (By the way, this doesn’t mean you’re a bad person; it just means you have been distracted.)
Save Money for Your Home
The days of buying homes with nothing down are gone. You’re going to need something between 10% and 25% of the home price saved for a down payment (NOTE: there are some government sponsored programs out there that have down payment requirements that are far less. Your lender will be able to tell you if you qualify for these programs.) Check out the Peoples Bank Savings Accounts.
Run Some Numbers
Peoples Bank loan financing calculators will help you calculate monthly loan payment amounts on different loan programs. Check them out!