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Easy Home Loan - How to Get An Easy Home Loan

finding a lender negotiate freeze your spending make your down payment count

Home ownership is a big part of the American dream. Renting or leasing your living space doesn’t give you the freedom of ownership, and putting money in the landlord’s pocket is as good as throwing it down the drain. The first step toward owning your own home is securing a loan.

With the recent mortgage crisis, many people interested in home ownership have the idea that it is impossible to get a fair loan these days. The truth is, taking out a home loan is as easy as ever. Like any major expense, taking out a loan for the purchase of a home is a matter of getting a grip on your personal financial setup, following the proper steps, and shopping around.

Finding a Lender

Mortgage lenders pop up in some strange places. How many times a day do you get an offer for a simple home mortgage in your Spam folder? In order to cut the jewel out of the rough, you’ll have to do a little bit of legwork. The easiest way to find a lender for a hassle-free mortgage is to ask your friends and family who have recently purchased a home.

Be sure to get estimates from the lender you choose. Closing costs can change, but by law your lender is required to show you the closing costs of your easy home loan within seventy-two hours of processing your loan application. Pay close attention to the terms, interest rates, and any other financial details you can find like penalties for prepayment or missed payments.

Negotiate

What is simpler than naming your own price? While marching in to your lender’s office and demanding a specific price is likely to get your loan cancelled, there are times that you can barter over the fees or “points” the lender charges you. A good credit score makes this bargaining period more fruitful for the buyer, so arm yourself for difficult negotiations by knowing what is on your credit report

One way of negotiating on the bottom line is to pay the lender a higher number of points. Since a “point” represents a single percent of the loan amount that ends up in your lender’s pocket, the more points you pay the lower your interest rate will be. This is a secret that many first time buyers are unaware of, and one that could save them thousands of dollars over the course of their simple home loan.

Freeze Your Spending

While you are on the way to your easy home loan, set your lines of credit to run silent. Even worse than making big purchases on a credit car during a mortgage search is applying for a new line of credit. Remember that credit inquiries (like those triggered by a new application) show up on your credit report. This isn’t normally a problem except that when you’re applying for a home loan, lenders will see multiple credit inquiries as a sign that you are desperate for cash. The name of the easy home loan game is appearing stable and financially capable of paying off what is probably the largest loan you ever take out.

Make Your Down Payment Count

Though the mortgage lender you choose may offer you a really low down payment, spending more cash at the outset will mean a fatter wallet during the rest of your lending process. Saving money on a down-payment may seem easy, but a home loan secured on a small down payment is more expensive over time. Gone are the days when it was safe to finance most of the cost of your home, but with an unsure marketplace comes the need to anchor your investment with cash. For the most part, easy home loan providers will not want to take on the risk of a highly leveraged arrangements, though it may be ideal for you, the investor.

These easy home loan strategies work for all sorts of debt situations, not just buying a house. If you ignore fees and penalties, it is easy to let your debt get out of control and potentially lose your home. If you’re looking for an easy home loan, first ask yourself if you can afford the house.

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