Get
Qualified
Getting qualified before you apply for
a loan can help you understand how much you can borrow.
When buying a house, you may get
pre-qualified or pre-approved. You can typically get pre-qualified
over the phone or on the Internet in a few minutes. A pre-qualification
is not as beneficial as a pre-approval where you have to go through
a more rigorous process which includes verification of your credit,
income, assets and liabilities. It is highly recommended that
you get pre-approved before you start looking for a house.
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Shop
loan programs and rates
To shop for a loan you will need to:
Think about how long you plan to keep the loan. If
you plan to sell the house in a few years you may want to consider
an adjustable or balloon loan. On the other hand, if you plan to
keep the house for a longer time, you may want to look at fixed
loans.
Understand the relationship between rates and points.
Points are considered to be prepaid interest
and are tax deductible. Each point is equal to one percent of the
loan.
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