Understanding Financing of a Home: Reqts to get a Good Faith Estimate

As of Jan 1st, 2010 new laws have been placed into affect to assist the consumer in understanding the loan process and how to obtain a better, clearer idea of what the costs are in your loan...One of the biggest questions Craig and I receive from buyers looking to purchase a home is "What does the bank need from me?" Before a Good-Faith Estimate can be considered... get your packet of information together to include: 1) Borrowers name 2) Borrowers Monthly Income 3) Borrowers Social Security Number 4) Property address in consideration 5) Estimates of the value of the property 6) Mortgage Loan Amount sought (ex. house amt less down payment). If you don't have a house in mind or need to just know the price range you are suitable for or how much of a house you can purchase for a certain monthly payment, we can do pre-qualifications to estimate your approximate purchase price. The new RESPA laws are also opening up the ability for the consumer to 'shop around' for loans. This was limited before. Against the standard process in America for the consumer to be able to shop for the best deal...it was never that way with the lending industry. After a short period of time, everytime you went to check your credit with different lenders for loans, your credit could be affected, which impacted your credit scores, which impacted your ability to make purchases. Now the industry has opened this up and you have appx a 30 day window to shop for the best loan on the market. The industry now has Approved forms to help you compare 1 loan to the next as well. The forms for shopping include comparing loan terms, interest rates, prepayment penalty (charges given to the consumer if a loan is paid off in advance) and many other factors. Always consult a lender of choice or a qualified Realtor to assist you with the education process for lending and financing. For more questions you are welcome to contact Craig and Sara at 785.364.0424 or fox2@holtonks.net Happy House Hunting and let us know if we can assist you with your new home purchase!