How to Get a Home Loan
How do you get financing for a house?
Financing your home is a large investment, which is why most people need long-term loans to buy a home. Before searching for a home to buy or financing options, first get a good idea of your financial standing. Buying a home is a huge financial obligation, so ensure that:
- Your finances can handle it
- You have enough funds to go toward the cost of buying the house and the down payment
- You have savings for the move and for new expenses associated with owning the new house, like bills and taxes.
Check your credit score so that you know how lenders view your creditworthiness. You’re also advised to visit your local housing agency to get information on housing programs that can lower the cost of buying a house (e.g., FHA loans, down payment grants, VA loans etc.). The housing agency will also inform you about the lenders who handle each program. This is important: a lender can’t offer you want they don’t sell, so you need to approach the right one(s).
When you’ve sufficiently informed yourself about your financial standing and what to expect from the market, approach a lender. You’ll be able to discuss and negotiate with your lender from an informed and prepared position, which would make finding a financing solution much easier. The lender will structure a loan that best suits you.
You’re encouraged to shop around and get quotes from multiple lenders. You can make savings on fees and charges if you give yourself more options.