Where to Start with a Home Loan

Beginning the home loan process can be just as intimidating as the home buying process, but it doesn't have to be!  Follow these six steps to help know where to start with a home loan:

1. The first step to homeownership and receiving a home loan is to make sure your credit score is in good shape.  Having a higher credit score will show lenders that you are more likely to be able to make your payments on time and be able to pay off your loan.  If you're just beginning to build your credit score, check out CB&S Bank's Tips for Building Your Credit Score article.
2. Next, try doing some research on your own before seeing a lender.  Use a home finance calculator to better help you understand how much you may be able to borrow or how much your payments may be.
3. You will also want to conduct research on the various home loan options available.  Because each home loan option is different, knowing the different types and the different requirements may help speed up the process of procuring the perfect home loan option for you.
4. It is also a good idea to compare rate quotes.  Don't just choose the first home loan that you get a quote for... Speak with different lenders and get multiple quotes so that you will be able to have an option.
5. Now that you have built your credit, played around with numbers on financial calculators, researched different home loan options and gotten multiple quotes, it's time to get serious about your home buying journey... Before beginning to look at prospective homes and attending open houses, get prequalified for a home loan.  Getting prequalified for a home loan will not only show the sellers that you're serious about purchasing, but also may give you an advantage over other buyers who have not been prequalified for a home loan yet.
6. Last, make sure you read all of the fine print and disclosures.  Know exactly what you're agreeing to, what costs you will be financially responsible for, and all of the other details that go along with securing a home loan.