Every time you see a sparkling, swanky show flat or those glossy real estate brochures you instantly yearn to buy one of those houses. However, arranging finance for your dream home or real estate investment is a completely different thing and demands that you keep your eyes and ears open while your feet are firmly planted on the ground.
Understandably, arranging the finance by securing a home loan that suits your interests is the most important step when you set out to buy a home. Hiring the best and reliable mortgage broker can also help you with any home loans that you need. Here's a quick view at how you can get a home loan:
Step 1: First and foremost, you must find a lender. Start by asking friends, work mates, family, or other reliable sources for referrals. You can even speak with some real estate agents in your neighbourhood and search on Google.
Step 2: If you are interested in getting an online home loan then you will have to fill out an application for approval.
Step 3: Next you must speak with your chosen lender for an estimate of the cost involved in procuring the loan. As per law, the home loan lender needs to provide you with the estimation statement within 3 days of having received your loan application. You must also ask your lender, which type you have been selected for. Don't forget to ask him/her about interest rates, terms of the loans, and other specific information, ex: higher repayment penalties etc, as these can spell trouble later on.
Step 4: Perhaps one of the most important steps when getting a home loan is comparing costs, fees, features, flexibility options etc from one lender with others. This helps you understand the complexities and terms better while giving you scope for negotiation.
Step 5: Negotiate fees involved. Most of the times you can successfully negotiate the home loan fees or home loan points (a point is 1% of the home loan amount) your lender can charge you.
Step 6: Try to repay more and lower your interest rate. The interest rate has an inverse relationship to home loan points; i.e. the lower your interest rate, the more points you have to pay.
Step 7: Make sure you give all the necessary documents.
Step 8: Most lenders may want the appraisal, credit report, loan processing fees paid up-front.
Step 9: Read the loan papers carefully. Don't miss the fine print. You should receive the loan papers within a week of your application review. Check for the original quote.
Step 10: Make sure your down payment amount is deposited in your account before you sign the loan papers.
Step 11: You can even bring a cashier's check for the down payment amount to the escrow or title company. Your lender will then send a check for your home loan amount to the title company.
Step 12: Finally, congratulate yourself for having got a home loan, after you have completed the transaction and signed off all documents and received your copy of the deed and the keys to your very own house!
Looking for a trusted mortgage broker that specialises in home loans? Consult Lendium today!