How To Get The Best Home Loan

Despite what some new headlines shout, there are still choices for those seeking home loans, and you should still strive to get the best mortgage deal possible. But how would you go about doing that?

The first step to getting the best home loan is to be prepared. This is a sizable investment and it is definitely worth spending 30 minutes or even a couple hours getting prepared to save yourself more time and thousands of dollars later. Start by obtaining a copy of your credit report so that you know exactly what is on it yourself and can avoid too many inquiries when shopping around which can lower your credit scores. Be wary of many sites charging for copies of your credit report that do not provide the same data or credit scores that a lender will be looking at. Your credit reports and scores should be pulled directly from the three main credit bureaus; TransUnion Equifax and Experian. You can then get a head start by addressing any incorrect information and use your copy to shop around. Also get together as much of your paperwork ahead of time as possible. The more information you provide upfront the more accurate any quotes you get will be.

You will likely need to at least provide:

• Most recent 2 months pay stubs
• W2s or tax returns for the last 2 years
• 2 months bank statements
• Copy of your ID/ driving license

Next ask for referrals for banks and mortgage lenders that have done a good job for friends and family of yours as well as from your real estate agent. It can be hard to know who to trust so it is much better to find a reputable company by referral than just flipping through the Yellow Pages, watching ads on TV or searching the Internet

Then start getting quotes from at least 3-5 different mortgage lenders. Do not immediately commit to the lowest offer you get. In fact a quote that is far lower than all the others you have received may be a red flag. Keep in mind that most things are negotiable when taking out a home loan so ask about fees, rates and terms and try to get at least a few hundred dollars off of the first offer you are given.

Then obtain a pre-approval from your lender of choice so that you can go out and shop for a home with confidence and ensure that you are looking in the right price range. However, you must be aware that pre-approvals are not a guarantee of financing. Take a look at any times specific that need to be satisfied in order to find your loan and make sure that you can provide them and try to clear them as quickly as possible so that there are no delays later.