How to Get a Home Mortgage in North Dakota

Sometimes the most stressful part of buying a new house is finding the right mortgage loan. For most, it can be confusing and time consuming process. To make it easier, the following are the key steps to making the process of finding a North Dakota home mortgage loan go more smoothly so you can start enjoying your new house.

Instructions

Difficulty: Easy

1. Obtain a copy of your credit report. Carefully review it and make sure any errors are corrected.
2. See if you qualify for homeownership assistance programs from the federal government and the state of North Dakota. If you are a veteran, disabled, a low-income buyer, a single parent, a senior citizen, or a rural home buyer, you might qualify for a program such as the First Home Program, the Home Access Program, and the Home Key Program.
3. Visit these government sites for more assistance information: o North Dakota Homeownership Overview o USDA North Dakota Rural Development programs o North Dakota Homeownership Assistance programs
4. Compare loan rates and terms from several lending institutions such as mortgage brokers, credit unions, banks and online mortgage lenders. Shop around so you get the best rate available.
5. Select a lender and get pre-approved for a loan. Be sure to have all necessary documentation which might include but is not limited too credit reports, stocks and bonds, bank account numbers, tax returns or forms and other information that your lender requires for the approval of the loan.
6. Choose a reputable licensed real estate agent and begin the search for your new home.
7. Complete a home mortgage loan application with your lender, and place a formal offer on the home of your choice.
8. Now pay all closing costs, attorney fees, and realtor fees. The lender will provide you with a schedule for repayment of the mortgage loan.

Tips & Warnings

• Shopping around for the best rates will save you a ton of money over the term of the loan.
• If an agent is steering you to buy a specific home, run. This is your choice, not theirs.
• Take extra care to understand all the terms of the loan before you sign anything.
• Paying for a loan application is never necessary. If you are prompted to pay a processing fee, walk away and find another lender.
• Scam artists are attracted by the big money available in home loans. You may wish to have an attorney review any documents before you sign them. Watch out for predatory lending, a practice where lenders intentionally coerce consumers into contractual loans with unusually high payment terms and interest rates, often targeting uninformed borrowers or those with poor credit.