Generally, you want to be looking for low interest rates, but your broker can advise you of the specifics. Compare all the associated fees, along with the interest rates, including origination fees, points, and any other fees that the lender might include in the deal. For example, any loan that’s regarded as a “no-fee loan” means that all fees have been included in the rates. Even if you’ve hired a mortgage broker to help you sort all this out, you still need to be involved in the process and do your own due diligence. It’s your responsibility to ensure you understand every aspect of the mortgage deal. You should do some thorough research and investigation, which includes interviewing whoever is handling the loan, and asking them Another task you should undertake before you begin looking for a new home, which we’ve talked about already in this book, is organizing your credit issues—particularly after a foreclosure (or near-foreclosure). It’s important to ensure your credit is in order, because making any mistakes at this juncture can take months to correct and might even end up sinking your dream of being a homeowner once again. Be sure to obtain your credit report as part of this process. This will provide you withmuch- needed information in knowing where you stand and giving you a chance of getting the best bargaining terms. Fix your credit if you need to. If your report shows you aren’t creditworthy for a mortgage, then there’s no point in searching for homes and applying for a loan, at least right now. Use a credit repair company, but do some research first to make sure you find a reputable and affordable company. Some are not qualified to properly fix your credit; others will overcharge. all-important and relevant questions. CHECK (AND FIX) YOUR CREDIT
212
Powered by FlippingBook