How to Get a Home Mortgage in Mississippi

The state shell of Mississippi? The oyster. And, like this slippery delicacy, if you’re willing to do a little research and spend a little time on your mortgage, it’s very possible to find a pearl at the end of your endeavors. Follow these steps to get a Mississippi home mortgage loan.

Instructions

Difficulty: Easy

1. Know your credit score and examine your credit report. If there are any blemishes or mistakes, try to clear those up before applying for a loan.
2. Check out the options available in homeownership assistance programs from Mississippi and the federal government. These are typically offered to veterans, disabled, low-income buyers, single parents, senior citizens, and rural home buyers, and include programs such as Housing Assistance for Teachers, the Home Of Your Own Program, and the Down Payment Assistance Program.
3. Currently, many lenders in Mississippi are offering special relief packages to victims of Hurricane Katrina or first-time home buyers. This benefit may allow you to obtain a full mortgage with little to no down payment or out of pocket expense.
4. Check out these government links for specific information and qualifications: • Mississippi Homeownership Overview • USDA Mississippi Rural Development programs • Mississippi Homeownership Assistance programs
5. Contact credit unions, mortgage brokers, banks and online lending institutions for the best home mortgage rates, and once you’ve found a loan that works for you, get pre-approved. The advantage to being pre-approved is that you’re one step ahead in the whole process when the time comes to bid on a house.
6. Choose a lender, file your loan application, secure your rate, and get pre-approved. Make sure you have the correct documentation for your loan like tax returns, proof of employment, investment information and other documents specified by the lender.
7. Get help of a real estate agent that is reputable and knowledgeable of the market. Especially in Mississippi where there is so much variability in geography, a real estate agent can help give you a good idea of what the market is like, local zoning laws, taxes, and if the market is expected to fluctuate up or down in the future.
8. Finalize your loan and make an offer on a home.
9. Pay all attorney fees, closing costs and real estate fees. The lender will provide you with a schedule for repayment of the mortgage loan.

Tips & Warnings

• Shop around for the lowest interest rates. The difference in savings from just a quarter of a percent can mean thousands of savings over a 30-year mortgage.
• Be sure to have your prospective home inspected by a professional. Discover problems that may exist before the deal is finalized.
• Avoid letting a real estate agent pressure you to buy a specific home, as they may have another agenda.
• Before you sign anything, make sure that you thoroughly understand all the terms of the mortgage contract
• Do not pay a lender to apply for a loan. No reputable lenders engages in this practice.
• Record low interest rates in recent years have led to many unethical lending and loan scams. Have an attorney review any documents before you sign them.
• Check to see that the home title is clear of liens before you purchase it.
• Be aware of preditory lending, which is lenders that intentionally coerce consumers into contractual loans with unusually high payment terms and interest rates, and is often directed at uninformed borrowers or those with poor credit.