Where can I get a home loan?
Here Are The Top 5 Mortgage Lending Institutions
There are hundreds of sources for home loans
online and right in your neighborhood. Banks,
Credit Unions, Mortgage Bankers, Government Agencies
and Private Sellers all offer different sources
of financing for anyone shopping for a mortgage.
Neighborhood Banks
One of the best resources for getting a home
loan is your neighborhood bank. Depending on the
length of your relationship with the bank and
the amount you have in you checking or savings
account, you might be sent out letters and emails
inviting you to apply for a loan. If you are generally
satisfied with the quality of the service that
you receive form your bank and they are offering
a great interest rate, don’t walk away.
Even if the offer is not quite what you’re
looking for, walk into the nearest branch, and
ask to speak to a loan manager. Once you are there,
make your case in person for why you would like
a certain loan or feel that you deserve a better
interest rate. Most banks, especially the ones
in larger cities, are part of a larger conglomerate
or depend on a large conglomerate to finance items
such as a home loan. Go through the process with
the loan officer, but don’t be surprised
if you don’t get an answer on the spot. It
might take a day or two.
Credit Unions
Some of the lowest rates on any type of loan
product such as student loans, mortgages and personal
loans can be found through a credit union. If
you are eligible to join a credit union, sign
up and set up a savings account with small monthly
deposits. This way, you can use the resources
of the credit union when needed.
Mortgage Bankers
 These firms deal exclusively with home loans
and give you the widest possible selection of
home loan products. You can find local and national
Mortgage Bankers by doing a quick search on Google
or Yahoo. Go to the website of several different
firms, fill out an online application and you
can be approved in a few hours.
Government Agencies
The agencies that lend mortgage money include
the Federal Housing Authority (FHA), Veteran’s
Administration (VA) and the Farmers Home Administration
(FmHA). Contact each agency directly to see if
you meet their requirements.
Private Sellers
An often overlooked financing alternative is
to see if you can lease a property from a homeowner
with an option to buy later on. If the homeowner
has the resources, they can also finance your
move in with a low interest loan.
Check out these resources individually or discuss
your options with a loan officer.
Buying A Home At A Foreclosure Auction
Bidding at a foreclosure auction is not as simple as it seems to be. If proper guidelines are not followed while bidding you might get messed up in the rush to bid and end up in a disastrous situation. An experience of attending at least two auctions is required prior before making your first bid. Let's discuss some of the dos and don’ts of foreclosure auction.
What should be done?
 You must possess a fine print of the auction catalog which should be studied carefully before attending the auction. There should not be a single line in it left unread. The terms and conditions must be read carefully because you cannot make claims later on after winning the bid. The sales document must be read and understood carefully. The purchase agreement, the home inspection, appraisals and disclosures must also be read without failure. A flaw during the auction on your part should never happen because of carelessness while reading the catalog. You should have perfect understanding of all the details specified in it.
Inspection of the property before the auction is of prime importance. This is the phase where you can give your desire to buy a second thought. A licensed home inspector must be hired and should accompany you when you go to inspect the house. Walk through the property with the inspector and gather information about the condition of the roof, flooring, plumbing, electrical wiring, appliances, water supply and other fundamentals. Get detailed reports from the inspector regarding the faults in the property and the amount that will be required to repair them. Based on your plans of handling the property after winning the bid, calculate the repair cost.
Add the repair costs to your bid amount, as in most cases it is the responsibility of the buyer to make the repairs and renovation as required. Also gather clear information about the liens and liabilities against the property, the prices of which should also be added to your bid amount. You should spend ample time on finalizing the bid amount so as to prevent future hassles.
There are two types of auction, absolute auction and reserve auction. Buyers normally prefer absolute auctions in which there is no reserved minimum bid and the highest bid must be accepted by the lender regardless of the price. Sellers, on the other hand, prefer reserve bidding, in which they have the right to turn down the highest bid if it is less than the reserve amount or the price of the property, so they don’t end up in a loss situation. One must have a clear idea about what type of a bid he is going to attend.
What should not be done?
Accompany a good Realtor, attorney, or accountant when going to any auction. Never go alone and bid at an auction. Ask your Realtor to review the property and the detailed documents that you have collected before attending. It is good to have a discussion with the Realtor regarding these documents before making your bid.
Excitement is a no-no while bidding. Getting over-enthused.is what leads to overbidding. Never act just out of ego to outbid your peers, which will only end up in you paying a high amount needlessly. Stay calm and relaxed while bidding and think twice before making a bid.
Attending an auction for just one property is a waste of time and money. Do some research and select at least five to ten properties to bid on so that you have a higher probability of winning a bid. If you are prepared just for a single property, you will have to witness many auctions, which had you prepared for you might have won.
Clarity in your plans and ideas are vitally important before making a final decision to bid. Changing your decision on purchasing the property may result in you losing the initial deposit or down payment or both.
Proper study and planning is essential in each step of foreclosure auction. The process of foreclosure auction should not be taken casually.
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