Lock-in refers to a written agreement guaranteeing a home buyer a specific interest rate on a home loan provided that loan is closed within a certain period of time, such as 60 or 90 days. Often agreement also specifies number of points to be paid at closing.

A mortgage is a document signed by a borrower when a home loan is made that gives lender a right to take possession of property if borrower fails to pay off loan.

Overages are difference between lowest available price and any higher price that home buyer agrees to pay for loan. Loan officers and brokers are often allowed to keep some or all of this difference as extra compensation.

Points are fees paid to lender for loan. One point equals 1 percent of loan amount. Points are usually paid in cash at closing. In some cases, money needed to pay points can be borrowed, but doing so will increase loan amount and total costs.

Thrift institution is a general term for savings banks and savings and loan associations.

Transaction, settlement, or closing costs may include application fees; title examination, abstract of title, title insurance, and property survey fees; fees for preparing deeds, mortgages, and settlement documents; attorneys’ fees; recording fees; and notary, appraisal, and credit report fees. Under Real Estate Settlement Procedures Act, borrower receives a good faith estimate of closing costs at time of application or within three days of application. The good faith estimate lists each expected cost either as an amount or a range

When shopping for a first time home buyer loan make sure you shop around and find a broker or a loan officer that’s responsive to your needs. And don’t be afraid to ask question. Remember, it’s questions you don’t ask that could keep you from saving money.

The best thing about this process is that most of these mortgage brokers won’t even pull your credit when you apply. That means that there is no risk to you for trying it out. Usually when you have started to work with a specific mortgage lender, that is when they will ask if they can pull your credit report. You may already know that multiple inquiries on your credit report can drop your credit score slightly, and if you have bad credit to begin with, you are going to want that score to be as high as possible.

Talk with many different mortgage loan brokers, if you can, have one mortgage loan broker pull your credit and then ask him/her what your credit score is. Then, go to all other lenders you want to apply with and tell them your situation, with your credit score, income and down payment information. Have them give you some estimates of what they can do before they ever pull your credit.

There are many things you can do to boost your credit score, but before you let your bad credit keep you from getting into a home, be persistent and make sure you have applied with or talked with as many different mortgage lenders or mortgage service companies as you can. If you can apply online, that is a fast, easy way to apply with many mortgage lenders and get responses quickly.