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Step 1
If you're one of those lucky souls not involved in any foreclosure process and looking to take advantage of all the homes/condos for sale anywhere in the USA, you couldn't have picked a better time. Forget about the nay-sayers who say loans aren't available. Sure they are, and rates are terrific. You just need to be careful when you're out shopping. Here are some things you need to know.
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Step 2
Whatever sounds too good to be true - probably is. Think P.T. Barnum.
There is NO such thing as a NO cost loan unless you pay it off the day you get your first payment slip. You can get a loan with no closing costs, but the interest rate will be higher.
The least payment you can make and NOT add to your loan amount is an Interest Only loan - and that's a BAD loan. -
Step 3
Never finalize a loan if it carries any prepayment penalties. Adjustable rate mortgages are generally only good for the lender, not you, the borrower. Take a pass on this type loan. Always get a signed copy of the Good Faith Estimate from your lender. Finally, always tell your lender to lock-in your interest rate ASAP and DEMAND proof from the lender signed and dated, so you won't get screwed.
