Don’t Cheat Yourself
Now that you’ve addressed your credit, lets take a look at preparing for the next step of your home purchase adventure.
Since many of you are first time buyers, it is important to recognize Lenders/Brokers/Bankers are accustomed to doing everything for you. Lets face the truth. This means the typical home buyer that comes to them in need of a loan is uneducated, unprepared, and vulnerable to an individual Loan Originators desire to make a huge profit at your expense.
How you control what you pay relates to how well you manage the process yourself. The big misconception by many financial experts throughout the U.S. is your need to only shop interest rates and closing costs. While the closing cost analysis could be correct, many refer to closing costs as shopping Loan Originators for Good Faith Estimates.
The truth, the whole truth, says you are inviting a home buyer nightmare if you follow this two shop approach. As a home-buyer, your purchase requires your full participation in the whole process which expands well beyond just the rate of interest and closing costs. By doing this, you protect yourself from virtually every predatory lender (typically a single individual) who would otherwise take advantage of your lack of preparation and knowledge.
To help you along your road, we have developed several worksheets that each home buyer should actively use, before they begin considering a Lender or a home. These forms break out the HUD into “vendor specific” sections which are easy to read and use. They address each expense category beyond shopping for Good Faith Estimates. Very similar to the how they will appear on your HUD 1 and 2.
What is a HUD Form? It is a final two page document that you sign at closing. The HUD page 1 and 2 is nothing more than one page that details all the costs associated with your transaction and page two provides a accounting overview of where the funds came from and who they go to using totals.
Also note, these PDF Forms are designed to allow you to type right into them, so if you’re on the phone, you can simply type the information into the document prior to printing them up.
|Compare Loan Originators
Compare Title Companies
Compare Home Owner Insurance
Calculate Your Costs To Close
Title Company Fees
Appraiser Quote Sheet
Survey Quote Sheet
Home Inspection Quote Sheet
Cost To Close
You will also want to download the page two Sample HUD as part of your analysis.
These documents will be addressed individually. However, you may want to print or save a copy of each before proceeding.