• Have one lender check your credit score.                             
• Have the lender determine how much you are qualified to borrow.
• Estimate the cost of Taxes, Insurance, Association Dues, Principle and Interest (PMI if needed) to determine what will be a comfortable payment.
• Get a Pre-Approval letter to use as a shopping tool.
• Find a property that you would like to own that fits into your payment "Comfort Zone".
• Make an offer and negotiate and accepted "Purchase Agreement".
• Now that you know all the variables, compare a few lenders "Good Faith Estimates" to determine the best overall choice.
• Jodi will then send your "Accepted Purchase Agreement" to your lender of choice and the process of closing the loan will begin.

Questions to Ask Lenders

 As you speak with lenders you should keep a few things in mind...

• How much will it cost to close the loan? 
• When will I receive a GOOD FAITH ESTIMATE? http://www.lenderhomepage.com/Forms/Good%20Faith%20Estimate.pdf  This link is to an example "Good Faith Estimate Form".
• Does the lender charge discount points or an origination fee?  (This could be important for tax purposes)
• What is my interest rate?
• How long is my interest rate going to stay the same (fixed)? 
• Is there a penalty for paying off the loan sooner then the end date?  How long is that penalty in force?
• Do my payments go principle and interest?
• Are the Property Taxes and Insurance part of my payment?

If you plan on a down payment of less than 20% (which is extremely common) of the cost of the home you will also want to know...

• Will I have more than one loan?
• What will the interest rate of both loans be?
• Will I have PMI (Private Mortgage Insurance)?
• If I do have PMI, how much will it be?  Is it tax deductible? 
• When I owe less than 80% on the home will the PMI go away?  Will I need to do anything to stop it? 
• Do I qualify for First Time Home Buyers (FHA) programs, Montana Board of Housing (MBOH) or any other assistance programs? 

Watch Out For the Following

Doing this small bit of research can help avoid you falling prey to common lending traps such as...

1. Inflated closing costs.
2. Unintended rate buy down situations.
3. Teaser or short term rates.
4. Surprises and unexpected costs and fee.

Receiving a "Good Faith Estimate" from each lender you shop will help you compare Apples to Apples and sort though all the numbers that you are receiving. 

To the right is a list of lenders my clients have personally worked with within the past year.  Each lender has provided a level of service that has satisfied or surpassed my client's and my personal expectations.  You may choose to contact some or all of these professionals in you quest to receive a loan.  If you have any questions or need some assistance on determining which lenders to speak call me first.  Although any of the lenders should do fair and honest job for you, each has strengths in dealing with different financial situations and personalities.  As your Realtor you are welcome to use my experience and knowledge of their strengths, weaknesses, abilities and personalities to help select the best lender for you situation. 

Choosing a lender is a Serious Decision

It is possible that if you stay in the same home that you might have your loan for many years.  For this reason, a little up front research can save you thousands of dollars in the long run.   Although some or all of the lenders  you talk to may disagree, my personal recommendation is to only allow one lender to check your credit, and use the score to help you evaluate other programs.

Questions?  Call 599-5900 or email jodi@CallJodi.com  for help.   Jodi Leone, Realtor

FYI...

There are 3 major credit bureaus that lenders use to determine your credit score.