One of the most important parts of the process is to remember that the loan industry is nothing more than that, an industry. They have a job to do, and they will do it at most any cost. However, you can help yourself by going on the internet and reading all you can about loans. Do your research! Apply at more than one place, for lenders should be competing for your business. Use the copy of the first loan application to tell you what you are looking at, and go to another lender and fill out their paperwork. You can then compare who is getting you the better deal. As long as you make the loan applications all within 14 days, it only counts as if it were one check on your credit as well.
They are going to tell you to get an appraisal. Let the paperwork process for a bit before you do this. As long as everything is approved pending the appraisal you are in good shape. However, if the loan goes bad for some other reason, you will have just paid for nothing. Another thing to remember is the commission that you pay. Go in with prices that you found during your research so that you have something to bargain with. You can’t just go in and expect them to lower their rates unless you know what they should be lowered to. But most of all don’t enter into a loan with anyone you haven’t checked out. Go to the state government, Better Business, etc. and check out the company before you give them any personal information.
Ask them for a copy of your paperwork – your credit report, the appraisal, the Good Faith Estimates, Truth in Lending, Loan Commitment, Lock Commitment, and the Preliminaries (like your HUD-1 a day or more before closing). You probably don’t know what half of the things on that list are, but your loan officer will.
Believe in thyself. Getting a loan, especially a mortgage is a huge undertaking and you would be wise to be careful. But also know that it is what is called “good debt”, and that is important. But don’t let your lender see you scared, for all that will do is drive up the cost of your loan. Be part of the 17% of Americans who actually get a good deal on their loan.■
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