SELECTING A LENDER
Some buyers call various lending institutions to check on rates and generally go with the lender with the lowest rates. However, it is strongly recommend that you go with a lender who has been referred to you either by your Realtor or by someone who has actually gone through the entire loan process with that lending institution and loan officer. Though most lenders offer the same basic loan programs, some may offer special products or incentives to borrow from them. For example, some lenders specialize in low down payment loans, some specialize in loans for people with marginal credit, some specialize in loans for self-employed borrowers, etc. Your Realtor will steer you in the right direction. You should consider meeting with the loan officer as soon as possible in your home buying process to review and be sure you understand every aspect of the loan process. A wise strategy would be to get pre-approved. This is easy to do and could possibly save you thousands in negotiation on a new home. Most lenders can get you approved for a loan even before you have selected a home. Your loan will be approved "pending a property appraisal". Pre-approval makes you, the buyer, much more comfortable knowing that you won't find your dream home only to have the loan turned down and sellers are much more likely to deal with you on the sales price if they know that you are a qualified, pre-approved buyer and that nothing will fall through. You should leave the lender appointment with a clear understanding of what your complete monthly payments will be, a pretty good estimate of how much cash you will need (from beginning to end) and what supporting documentation you will need to furnish to the lender.