Looking for the BEST Mortgage

The information included here comes from various sources, including, The Federal Department of Housing and Urban Development (HUD) and State of NJ Housing and Mortgage Finance Agency (NJHMFA).

 When looking to buy a home, in many cases, you are also looking to buy a mortgage; two separate processes but needing the same level of buyer scrutiny. Shop around and obtain information and quotes from several sources. Home loans, mortgages, are available from several types of lenders, like savings and loans, commercial banks, mortgage banks and credit unions. Different lenders may quote you different prices. In addition you may encounter a Mortgage Broker, an individual or firm that doesn't actually lend the money, but instead finds a lender for you. Mortgage Brokers may not be obligated to find you the best rate unless you have contracted with them to act as your agent.

It might not be obvious whether the person that you are dealing with is the lender or a broker. Sometimes they wear both hats and may offer the services of a Broker even though the firm is itself a lending institution. Make sure you understand if there is a broker involved. It can cost you if you don't realize that the broker fees are on top of what the lender charges for origination and other loan services. There may be additional "points" paid at closing or as an add-on to your interest rate, or both. Ask how this will be implemented in your loan so you can compare the actual costs between the various lenders you contact.

We have listed in our Affiliates mortgage-checklist-3Dseveral individuals and local agencies that are Mortage Brokers and/or Banks. Use them as a starting point in your search for funding what will probably be the largest purchase you ever make. Be sure to ask them the questions that are important to your research to get the best rate and terms for your mortgage.

Click the photo to access the Mortgage Checklist and Glossary PDF.


 When financing your home, there are necessary steps that you and your mortgage professional must take in order to receive the loan:

  1. Before applying for a loan, you should obtain a copy of your Credit Report and correct any negative effects on your credit.
  2. Fill out the application with the aid of your mortgage professional, and provide any required documentation.
  3. Provide your mortgage professional and lender information on your income, assets, and debts in order to pre-qualify for a loan. The lender will assess your ability to pay back the loan, and your willingness to pay it back, and also determine how much you can pay for a house.
  4. After the application is submitted, the processor  orders the appraisal and title report. An appraiser interprets the market, physical condition of the property and the amenities to estimate the value of the home. Once the processor receives the appraisal and title report, he or she examines it to check for any property issues that may require investigation.
  5. The processor also verifies the information of the application, payment history, and bank deposits.
  6. After the processor completes the package with all of the documentation and verifications, it is sent to the underwriter, who determines if the package is deemed an acceptable loan. After the loan is approved, you may need to provide more documentation or information.
  7. After loan approval, the closing attorney schedules a time for you to sign the loan documentation. You should bring identification and a cashier's check or wire funds for the down payment and closing costs. You will also need to review the final loan documents and verify that the interest rate and loan terms are what you agreed to, and that the names and addresses on each document are correct.

These are the most commonly used documents in the loan process. Your mortgage professional may require more documentation.

If you are a Self-Employed Borrower, you should also include:


Before you commit to the loan process, there are some actions that you should and should not take in order to cause any negative effects on your loan.

Do:

Don't

HUD offers many resources to help you get started in your quest to buy a home. From mortgage guidelines and options to the actual process of shopping for a home check out their website at http://portal.hud.gov/hudportal/HUD?src=/topics/buying_a_home