When financing a new home there are many ways to save money. Negotiating with mortgage lenders is always a good idea. If you have the ability to get a home purchase loan with no fees, we strongly recommend that. Ask your loan officer if the title, escrow and recording fees can be reduced. Ready to plunk down your hard-earned cash for a slice of the American pie? Make sure your financing is low fat.
Since home buying is likely the most expensive, long-ranging financial commitment most of us ever make, make sure that you make every effort to cut expense on your home mortgage loan. The more homework you do before heading out with a real estate agent or before making an offer on a home, the more likely you are to stretch your mortgage budget.
Here are several ways to get the most bang for your money beginning before you step out the door to shop.
Get pre-approved for your mortgage loan, rather than just pre-qualified.
With pre-approval, the lender pulls a credit report, verifies a borrower's income and takes other preliminary underwriting steps to come up with a maximum allowable loan amount, which usually doesn't change. The lender also commits, in writing, to making that loan if a purchase occurs within a set amount of time. In a pre-qualification, the customer provides the information, but the lender doesn't check it and there's no assurance that the loan will be approved.
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