Steps to Home Loan Shopping Intelligence

Before you roll up your sleeves and dismantle all of your financial documents in the aims of securing a home loan, there are more than six steps you might consider taking before finalizing your mortgage decision:

1. Prior to making a loan decision, brush up on your rights and how mortgages are devise. Certain classes and literatures define your right and mortgage terminologies. Also, attending a homeownership symposium hosted by the US Department of Housing and Urban Development (HUD) or a non-profit counseling agency can prove to be resourceful.

2. Interview a variety of mortgage companies and financial institutions or several real estate professionals (agents), and ask for and check references before you select one to help you buy or sell a home. Be leery of any loan officer who attempts to steer you to a specific lender.

3. Obtain the rates and prices of other homes in your neighborhood or locality. Be informed to avoid the expense of paying too much for your home.

4. Hire a licensed home inspector or certified specialist to meticulously assess and inspect any property before you finalize your purchase decision. Remember to obtain in writing which repairs the owner promises to be responsible for or which repairs you will remit payment. More importantly, if you agree to pay for the repairs, calculate how much the repairs will cost you.

5. Caution is advised. Never allow a loan officer or mortgage broker persuade you to make a false representations in your loan application. Since falsification of a mortgage application is deemed as fraud that can result in criminal penalties, all information detailed should be accurate and complete. The following information should not be fudged on your loan application.

• Overstating income

• The source of the down-payment

• Failure to disclose the nature and amount of all debts

• The length of employment status

6. Understand the value of your lending power so that you know the mass of home you can afford. Never allow a lender to persuade or sell you on borrowing more money than you can afford to repay.