CHAPTER 10 Loan Shopping 101
Before you make an offer on a home, it’s imperative that you’ve first done some shopping for a good loan, have secured a great rate, and are pre-approved for a mortgage. I’ve touched on this several times throughout this book, but this chapter will delve more into the details and specifics, and walk you through the process of shopping for a home loan, or a mortgage. People often have no problem spending months looking for a home and taking their time in the home-search process, eventually finding “the one,” but tend to avoid doing the same when it comes to getting a loan. Researching homes is usually fun — looking up available homes for sale online, finding homes that match your needs and budget, imagining yourself in a new home and a new neighborhood, etc. Then, if a buyer finds their dream home, whether online or at an open house, they become so attached and anxious to get the process started that they don’t bother with doing enough financial research and preparation, thinking they can just make it all work, even if they don’t know if the home is affordable for them. When it comes to the “nitty-gritty,” which includes home loan shopping, home buyers, whether they’re first-timers or not, like to just get through it as quickly and painlessly as possible. Sometimes, they do very little research and grab the first offer given, regardless of the rate or considering what else might be out there. But this approach can often be harmful and costly in the long run. The reality is many buyers fail to understand the important of shopping for a loan, finding a loan, and finding a good loan. When
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