How to get prepared to qualify for a home loan?

Mortgage lenders are often depicted as shadowy figures who try and find ways to deny applications and keep homebuyers out of their dream house. But in reality, the opposite is true. Lenders work hard and often go the extra mile to make a loan work.

A mortgage broker takes your credit and income data and assembles it into a profile of you as a long-term borrower. Your file is then shopped to various investors by phone, fax, or e-mail. Since the mortgage industry is highly competitive and investors are not all alike in their rates and terms, a good mortgage broker will sift through the offers and negotiate the best deal possible on your file. The investor who agrees to make you a loan, based on the information provided, e-mails a commitment to the mortgage broker. Sometimes there are conditions included or requests for additional information. Once everything is in order, the investor usually e-mails or faxes the loan documents to the title company or closing agent.