Before looking for a home you will want to talk to a lender and figure out how much you can afford to pay for a home. Once they review your financial information, they will provide you with a pre-approval letter that tells the seller you have been pre-approved for a loan. While pre-approval is a good thing, it does NOT guarantee that you will get final approval for your loan, but is a good indication that on the surface you have enough credit to purchase a home.
You will want to shop for lenders the same way you shop for a home. Some lenders offer more services and better rates than others. We have several lenders we work with on a regular basis who understand how to finance homes in central Oklahoma. They are sure to include all the costs in your up front Good Faith Estimate so you don’t have surprises at the closing table.
Often times when buyers are shopping for homes on the internet they will see a monthly payment listed that looks fabulous. However, often these payment estimates don’t include items such as taxes, insurance, and PMI (private mortgage insurance). A good lender will review your credit history and provide you with a fair accounting of all your costs, including these as well as interest costs, estimated closing costs, and others. Each lender is required by law to provide you with a Good Faith Estimate (GFE) and you can use the GFE to compare loan costs.
Below is a video from REMAX showing you 5 tips for getting a better rate on your home mortgage loan.