Many mortgage sites are run by national mortgage lenders that funnel queries to their local offices. Others are Web-based mortgage brokers that work by phone and e-mail.
For example, if you go to E-Loan’s Web site (www.e-loan.com/ home ) and click on the Home Purchase tab, it sends you to a window with all sorts of home-buying options. To find out what loan you can afford, click on the Get Prequalified/Preapproved box. The next window gives you four options. Click on the first option, prequalify, answer the 11 questions, and submit.
After a few seconds, the results will appear in a worksheet telling you what you can qualify for, along with a breakdown of the proposed loan, along with another button you can click to start the application process.
Within hours you’ll get a list of lenders’ offers and their terms. Some sites will have you contact the lender directly; others will handle the paperwork and assign you a loan officer to work with.
There will be some up-front costs to get the application started. The first will be for a credit report, typically under $75. After the credit report and paperwork you mailed are approved, an appraisal fee of $500 plus or minus, depending on loan type, area, and sales price, will be needed to order the appraisal.
It’s important to remember that you should not pay any loan fees up front other than for a credit report to get a commitment. Beware of shady Web operators who quote a ‘‘too good to be true’’ interest rate and try to get you to pay a big commitment or loan guarantee fee up front. These predators are most active in subprime loans, where borrowers are unable to get financing through mainstream lenders. The bottom line is that there has never been a better time to qualify for a mortgage. With so many loan programs, liberal qualifying ratios, low interest rates, and a competitive market, renting doesn’t make long-term financial sense.
The next step is shopping for a lender and getting the best deal.
For example, if you go to E-Loan’s Web site (www.e-loan.com/ home ) and click on the Home Purchase tab, it sends you to a window with all sorts of home-buying options. To find out what loan you can afford, click on the Get Prequalified/Preapproved box. The next window gives you four options. Click on the first option, prequalify, answer the 11 questions, and submit.
After a few seconds, the results will appear in a worksheet telling you what you can qualify for, along with a breakdown of the proposed loan, along with another button you can click to start the application process.
Within hours you’ll get a list of lenders’ offers and their terms. Some sites will have you contact the lender directly; others will handle the paperwork and assign you a loan officer to work with.
There will be some up-front costs to get the application started. The first will be for a credit report, typically under $75. After the credit report and paperwork you mailed are approved, an appraisal fee of $500 plus or minus, depending on loan type, area, and sales price, will be needed to order the appraisal.
It’s important to remember that you should not pay any loan fees up front other than for a credit report to get a commitment. Beware of shady Web operators who quote a ‘‘too good to be true’’ interest rate and try to get you to pay a big commitment or loan guarantee fee up front. These predators are most active in subprime loans, where borrowers are unable to get financing through mainstream lenders. The bottom line is that there has never been a better time to qualify for a mortgage. With so many loan programs, liberal qualifying ratios, low interest rates, and a competitive market, renting doesn’t make long-term financial sense.
The next step is shopping for a lender and getting the best deal.
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