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3. Find out if there are any fees involved for pulling your three bureau credit reports, and for underwriting. Some lenders will charge fees up front and others will wait until you are approved for loan.
4. Fill out any extra paperwork such as proof of employments and statement of your resources. You have to prove that you enough cash on hand for a down payment, unless you are getting a no money down home loan. Also, you have to prove that cash is yours and not a loan.
If you want to a loan from your parents for example, try to get it six to eight months in advance and keep it in your savings account. Otherwise, it will count as a debt and could increase your debt to income ratio and have opposite effect; showing that you don’t have any cash and disqualify you from a much bigger loan.
5. Get a pre-approval letter from lender stating exact amount of loan that you will receive and interest rate.
6. Pay attention to expiration date on letter. If you are in a market such as Southern California where competition is particularly fierce, make sure you have most flexible expiration date that your lender will allow.
Whether it’s 30 days or 60 days, get it stated in writing. If you lose out on your first or second choice for a home (typical), you won’t be stressed to settle for anything just to get a house.
This article may be freely distributed as long as there's an active link to http://www.rapidlingo.com Syd Johnson Editor