From application to closing, the most important part of the loan process, is finding the right lender to work with, and the right loan.

Let's go shopping. 

The application and credit check are the first steps to finding a loan. We recommend that you speak with 3 to 4 lenders to find out what they can offer you for a loan. By working with 3 to 4 lenders, you can find the loan quote with the best rate/point combination. Please make sure that you answer everything correctly, or your rate may change.

Key Shopping Tips:

• The main benefits that you want to look for are rate and costs. Some loan officers will try to sell you on the fact that they can have your loan closed in 7 to 10 days. This really isn't a benefit, and almost every company can close a loan in the same amount of time.
• Rates do change, try to get all your shopping done within a 2 to 3 day period. Once you have found the right loan, contact the lender to move forward.
• Lenders will give you an idea of the rate, costs, and payment of a loan based on what you ask them for. Please be wary of any lender trying to have you take out more money than you need.
• Make sure that you complete all your shopping prior to allowing a lender to set up an appraisal for you. Don't let them rush you before you're ready to choose.

Working with your Lender

Key tips:

• One of the documents that you will be receiving is a Good Faith Estimate. Please keep in mind that this is in fact an estimate of the costs associated with the loan and may change before closing. Your lender will keep you informed of any changes prior to closing.
• After the appraisal is done, make sure that you receive a copy of it at closing. It is something that you paid for, so you should receive a copy.
• Keep in mind that full documents loans tend to have a lower interest rate than stated document loans.

Underwriting

This is the approval process prior to closing.

Closing

At this point, you will be meeting with a closing agent to finalize the loan. There will be a number of documents that you will have to sign. Please take the time to review all the documents that you have to sign, and ask any questions that you need to. 

Key Tips:

• You will want to take a look at the documents that outline the terms of the loan. The Note will have the interest rate of your loan, the amount that you are borrowing, and the length of time for the loan. The Adjustable Rate Rider will detail this information for an Adjustable Rate Mortgage. Take the time to make sure that all the information is correct.
• The HUD Settlement Statement will detail all the costs of the loan.
• If you feel that there is a mistake in the paperwork, have them correct it before you sign it.

After Closing

You have a 3 day Right of Rescission on your home loan. This is the period of time that you have to cancel the loan, before being locked into it. Have the closing agent explain this to you, and find out the last day that you have. This is your right.

Last, but not least. Try making extra payments to your loan. By making these extra payments, you can get out of your loan much earlier. If you had to do a loan to help with credit problems, develop a budget, and take control.

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