If you are a first time homebuyer, shopping for a mortgage can be an intimidating and overwhelming process. It helps if you know in advance what to expect and what you will need to do.
- Obtain your credit report and take action to make any necessary repairs to your credit.
- Shop for a mortgage. Don’t just go to one lender. Different lenders have different programs. You need to find the program that best suits your particular financial needs. Check with mortgage brokers, mortgage lenders, credit unions as well as banks. Also check and see what mortgage or downpayment assistance programs exist in your locality and if you qualify for any of them.
- Find out the total costs involved in each loan: monthly payment, annual percentage rate (APR), the number and cost of points, broker, origination and underwriting fees, administrative costs, mortgage insurance, and commissions, escrow and closing costs.
- Check the terms for different kinds of loans; the amount of down payment, the term of the loan, and whether the loan is a fixed or an adjustable mortgage and what are the terms of each.
- Negotiate. Ask the lender if they can offer better terms.
- Once you have decided on the loan you want, you may want to obtain a rate lock.
- Obtain a written loan comittment.
Read the article Beginner’s Guide To Mortgage Shopping in Realty Times.
I would be happy to talk with you about any questions that you might have about the Charlottesville, Virginia real estate market.
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