Mortgage Shopping for First Time Buyers

Mortgage Shopping for First Time Buyers

Shopping for a mortgage is a huge step by step process that takes time and planning with a good deal of attention being paid to details. This is especially true for first time Tarrant County homebuyers.

If you are buying a home for the first time and have already inspected your credit report, then you have taken the first step in getting a good mortgage. It is an absolute must these days that you get your credit in as good as shape as possible and that you are well prepared to answer any credit-related questions posed to you by the mortgage lender.

Now that your credit is in order, you can begin by shopping around for the mortgage lender that is right for you. Look at brokers, mortgage lenders, credit unions and banks to see what is offered.

Be sure to ask for all of the loan cost information such as the APR, the cost of points, fees charged by brokers, underwriting fees, insurance, commissions, escrows and closing costs. By having all of these figures, you will easily be able to compare the different mortgages.

Inquire as to what the down payment will be, the terms of the loan, whether it is a FRM or an ARM and the terms of each.

Don't be afraid to be heard. You may need to partake in some negotiations so the more you know, the more leverage you will have. Be prepared to negotiate the points, yield spread premiums and fees charged by the brokers as well as the commissions. Do not hesitate to ask lenders for better terms than what they originally quoted.

Once you are happy with the terms, finish the paperwork. This should include the agreed upon rate, the duration of the lock-in and the total number of points to be paid.

You should most definitely ask for a written commitment that guarantees you the specific terms and costs you've locked in. Having this commitment will put you at the top of the seller's list who wishes to close the deal quickly. Please go to www.tombrewerjr.com for more information.