STEP 2:
Find the Right Loan

Get help. Seek out a good loan officer.
At this point in the home buying process, many consumers head straight to a real estate agent to start visiting homes for sale. But before you do that, consult a loan officer to help figure out exactly how much house you can afford. There are as many types of mortgage loans as there are lenders, so it is important that you first understand how the mortgage process works as you shop for affordable housing options. The right loan can make the difference between finding and keeping your dream home and losing it because you borrowed too much.

An experienced and ethical loan officer can help you find the right mortgage loan. There are many ways to find a good loan officer:

• Ask friends and family for recommendations.

• Check out your local chapter of the Mortgage Bankers Association and get a list of their members. Not every lender on the list will have a mortgage loan that will fit your needs, but it’s a good place to start.

• Talk with people at your bank, credit union, and insurance company. Don’t talk to just one lender. Shop around for the best terms. Ask questions. A reputable lender should be willing to answer all your questions and help walk you through the mortgage process.

• When you’ve narrowed down your choice of lenders, check them out with your local Better Business Bureau or Consumer Protection Agency for any complaints or citations.