It is almost as if buying a home is solving a Rubik’s cube blindfolded while juggling with your kids at the same time. Indeed, I know that this situation is very familiar. To purchase a house one needs not only time but also a lot of paperwork. And this is how the process should start.
First and foremost, one must not be tempted by the opportunity to take the loan from his/her bank because it looks comfortable. It is just like agreeing to marriage to the first person you met at high school. Although you will definitely live through it, there are better alternatives available. Look for other banks and make sure you compare at least three offers of the lenders to be able to pick the one who wants to do business with you. The best lenders are the ones who explain everything in such a way that you would not feel embarrassed to ask all possible stupid questions.
Indeed, rates are important but do not be tempted to sign on the dotted line just because your lender gives you an attractive low rate. Always ask what the total APR is, taking into consideration all fees. For instance, the 6.5% loan with zero closing costs may turn out to be cheaper than 6.25% loan with sky-high closing costs. Do the math yourself or just search it online.
When your loan officer makes you wait for forty-five minutes to say you something insignificant, be ready that this deal is going nowhere. Make sure you hire a loan officer who is responsive to your email even before your morning cup of coffee is over and replies your texts instantly. Unwillingness to react quickly may certainly become useful in the middle of bidding wars.
Remember to inquire about the availability of FHA loans if your credit score is not great or your financial position is too poor to buy a house. These are government-backed and therefore require smaller down payment. There are also some programs in the state for first time homebuyers which offer to receive grants or forgive loans. Do not miss this opportunity because of the lack of information.
Always make sure your loan officer does not pressure you to sign documents until you understand everything completely. Remember, you are in charge.