The way you approach mortgage shopping can literally save thousands of dollars. Take time to understand the system and make educated decisions.  Doing so may very well cost you less over a shorter period of time.

If I can explain any steps along the way, please ask. I'm always happy to help.

The steps to successful financing

Get pre-approved.  Don't skip this step.  Getting pre-approved is fast, easy and free.  A written pre-approval includes a completed credit application and a certificate guaranteeing you a mortgage to a specified amount.  With one in your pocket, you won't waste time looking at homes you can't afford.

Instead, you can invest your time shopping for the home of your dreams - and in your price range.

Examine your finances.  How much can you afford to spend? While a lender will tell you how much you qualify for, it's up to you to figure how big a payment fits into your budget.  What monthly dollar amount do you feel comfortable committing to?  Remember to consider related costs such as insurance and taxes, as well as interest and principle.

Consider what type of loan is best for you.   Compare fixed-rate with adjustable rate mortgages. Look down the road. Where will you be in 15 years, 30 years?  What obligations might you have? Take those things into consideration as you choose a loan.

Check your Credit Report.   A lender will run a credit report on you (it only takes a few minutes), but you'll be ahead of the game if you acquire a copy first. You'll know exactly what's on it and be able to correct any inaccuracies. 

Shop Around.   When you're ready to get a loan, explore your options.  You can choose either a direct lender or a mortgage broker.

A direct lender has money to lend and makes the final decision on your loan. Brokers are intermediaries who choose from many lenders. A broker may be able to help find you a loan if you have special financing needs, but he or she will also receive a percentage of what you borrow.

While you're shopping for a loan, also look for the best loan costs. These may include:

• Interest rates  
• Broker fees
• Points (each point is one percent of the amount you borrow)
• Prepayment penalties
• Loan term application fees
• Credit report fees
• Appraisal costs

Local Lenders

Citizens Bank 

505 South Main  Las Cruces, N.M. 88004

-Jerome Dodson- 

575-647-4111  e-mail-   jdodson@citizenslc.com