During their search, many will find a highly competitive housing market. Countrywide Home Loans, Inc., the nation's largest independent residential mortgage lender, offers several tips to arm home buyers this spring. Get preapproved first Today, most lenders encourage prospective buyers to secure financing before they start shopping for a home. While buyers are more knowledgeable than ever about their financing options, many get caught up in the emotion of buying a home and forget to arm themselves with the information they need to make a large purchase. Before looking at a single house, prospective buyers should talk with a mortgage lender and get preapproved.
Consumers often confuse preapproval with prequalification.
Preapproval goes beyond prequalification and verifies credit information at the time of loan application. It is a written commitment made by the lender that the borrower will qualify for a maximum mortgage amount provided that there is a satisfactory appraisal and that there are no changes to the borrower's financial condition on which the preapproval was granted. Investigate fixed-period ARMs Home buyers may also find that in a competitive market they need to find ways to qualify for larger loans. Even with today's low fixed interest rates, adjustable mortgages may make sense for some buyers. While many of us think we'll live in our new home for 30 years, a typical home loan actually lasts about five to seven years.