Learning how to secure a home loan the right way is very important. A lot of people, particularly the first timers, usually visits their local banks and wonder why they have a higher rate of interest plus payments than their folks. The reason to this is because they do not follow the right procedure when securing a home loan.

Here is how to secure a home loan the right way:

Find a lender.
You get a home mortgage by choosing a bank or a finance company that you want to loan from. That bank or company is typically known as “the lender”. You will be assigned with “loan officers” also known as the lenders’ representatives who will help you to fill out your mortgage loan application.

Contact as many lenders as you can.
It is advisable that you contact more than one lender and evaluate the differences in their loans since this might save you a lot of cash over the life of your house mortgage.
Complete the loan applications according to the lenders’ instructions and then submit it along with any application fee that might be required.

Get an approximation of the closing cost from the lender.
According to the law, the lender is supposed to present this statement to you within 3 days after receiving your loan application. Do not forget to ask about the type of loan program that your lender has chosen for you, including the terms, rates plus any other important details like the prepayment penalties.

Compare terms, fees and costs of loans if you are working with multiple lenders.
Negotiate the fees. Sometimes it is vital to negotiate the fees amount.
It is also important to reduce your rate of interest by paying extra points. There is an inverse relationship between the rate of interest and the points paid. This means that when you pay more points, you will get a lower interest rate.

The next step is to provide the required documentation.
You can now sign the loan papers and then deposit your down-payment funds to your account 4-6 days before closing.
Once the all transaction is done and you have signed off on all contingencies, plus you have received a set of keys and a copy of the dead, it means that you now own the home.