The Loan Process

The loan is actually made by a lender, while a broker serves as the liaison between the buyer and lender. Friends, neighbors and co-workers should definitely be asked for recommendations on lenders and brokers. Also, lenders and brokers should be able to provide references if asked. To obtain the loan you'll have to produce some financial records such as pay stubs from the last thirty days and three months of bank statements. Be prepared to answer the tough questions about your financial history and gather your financial documents in advance.

You should also be tracking interest rates, as they tend to fluctuate. If interest rates reach a low, you might want to ask your lender to lock-in at that rate. Make sure your closing date falls within the lock-in period. It's important to select the type of mortgage that is best for you. Also, be aware of any unique lending agreements for select buyers such as first-time buyers or veterans.