How to Get a Mortgage Loan

Purchasing a home requires lots of paperwork and plenty of patience. The most important, and nerve-wracking, part of the process for most people centers around the financing of the home. Most people who buy houses finance them via loans, also called mortgages. It's certainly rare to pay for the entire cost of a house in one lump sum, so getting a mortgage is almost always a requirement of purchase. The question is, what are your options to get mortgage loan and how exactly do you go about getting it?

Comparison Shopping: The Key to a Great Mortgage Loan

The process of getting a mortgage will vary depending on your individual circumstances, but if you have average to good credit, chances are getting a mortgage won't be too complex for you. In fact, you may have a bit of flexibility and the ability to choose some terms that you want, rather than just having to take what's offered.

• You should approach multiple sources of mortgage loans, and compare the rates and terms that they're willing to give you on your loan.
• The one that suits you best is the one that should get your business: pay attention to things like the interest rate, time span of the loan, amount of down payment required, penalties for early payment, and overall clarity and approachability of the lenders.

If you've got less-than-perfect credit, the process of getting a mortgage may be a bit more difficult, since you won't be able, necessarily, to choose from multiple lenders. You may have to look around a bit to get one or two lenders willing to work with you, depending on exactly how low your credit score actually is. You may also find yourself dealing with sub-prime lenders and other mortgage lenders that specialize in bad credit borrowers. Sub-prime lenders have their place, but if you find yourself working with them, you need to be extra-vigilant to ensure that the terms of your loan are fair. Be very careful before signing any contracts with a sub-prime lender, and do your research beforehand to make sure you're getting the best possible deal. In this situation, every penny counts.

Getting Help

Getting a mortgage requires some research, some patience, and some comparison shopping. Finding the right lender, whether you borrow through a bank, a broker, or a private company, is a matter of combining your needs with what the lenders are willing to offer, and settling somewhere in the middle with a mortgage deal that works for you. Before you sign any loan documents, however, you should be sure to check with a qualified real estate attorney to make sure the terms are fair and that you're getting a good deal.