Obtaining A Tailor Made Home Loan

By Author: Scott F. Staudt
Total Articles: 91
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You want the most advantageous rates, most reasonable fees and the lowest monthly payment on your mortgage, but they are not going to come to you. But to get these desired results, you have to do a little footwork.

First you have to choose the type of mortgage that you think your mortgage should be. This will be a choice of fixed and adjustable rate mortgages.

As the names imply, fixed rate mortgages have interest rates that do not change. An adjustable rate loan "adjusts" periodically over the life of the mortgage, which may be one, three, five or more years.

The main attraction of an adjustable rate loan is that the interest rate is lower than a longer term fixed rate loan. If you, like most home buyers today, don't expect to be living in the same house for a great many years, long term fixed rate mortgages are not as attractive as lower rate adjustable mortgages.

However, a fixed term, typically thirty year, mortgage would probably pay off if you thought you'd be in the same home for an goodly length of time.

After the decision regarding the type of loan you want, you need to do a rate ...
... comparison, either on the phone or online. It is imperative that you note fees as well as rates when you are doing this comparison. Many times banks will have lower published rates and then sock borrowers with a lot of fees. Get this type of information from a number of lenders to do a comparison.

You should strive to have information on a minimum of three banks. It may take time to get quotes from as many lending institutions as possible, but it is worthwhile. This is a maor investment, you want to get it right.

Now you can be in touch with the lowest rate banks and see if you can get a mortgage commitment. Make sure you give the complete, accurate information that they require. It will all be verified eventually by a third party.

One last warning is that you may not get the mortgage from a particular lender, even if you appear to qualify. You may not fit their current criteria. They may have to have a particular mix of loans in their loan portfolio so that they can satisfy banking regulatins.

If you have a choice between banks, ask family and friends about their experience with them.

Finally, you have to make sure you are happy with the services given; if you are not receiving good customer service, you do not have to work with that particular institution.

Once you have a lender that meets all your needs, request a pre-approval letter. This will allow you to start looking for your house while they work on your application. At this point in the procedure, the application will be processed and you will have to supply certain documentation to the lender.

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