1.  Getting pre-approved prior to looking for a home.

Do not confuse a pre-approval with a pre-qualification. During the pre-qualification process, a loan officer asks you a few questions and then hands you a pre-qual letter. The pre-approval process is much more complex. To complete pre-approval, a lender must complete an entire loan application including credit and employment verification. The only portion of the application process which is excluded is the appraisal and title search. Pre-approval can help buyers get the home they desire. Once the prospective home buyers are pre-approved, they become a CASH BUYER and have more negotiating clout. Home buyers can then save thousands of dollars as a result and can be in a better negotiating situation. Most good REALTORs™ will not show homes unless their borrowers are pre-approved because they do not want to waste their time, their prospective buyer's time, and the seller's time. Lowrates will pre-approve prospective buyers at NO COST.

2.  Consider all options when choosing a lender.

While rate is important to borrowers, one should also review the overall cost of a loan. This includes looking at the APR, loan fees, discount and origination points. Some lenders include origination points in their quoted rates while other lenders add origination points in addition to their quoted points. So, when one lenders says 2 points they mean 2 points, whereas another lender means 2 points plus 1 origination point. The company that has the absolute lowest quoted rate may not be the best company for your mortgage business. Lowrates is committed to saving prospective homeowners money. We have done this by eliminating parties that charge unnecessary fees. As for our rates, our name says it all.

3.  Get a rate lock in writing.

When a mortgage company has locked your rate, make sure you receive the following: a written statement that details the interest rate, the length of the rate lock, and details about the program. Lowrates makes this easy for you. Our loan process is so short that we will lock loans at any time after the loan is approved. To lock a rate, simply contact a loan coordinator at (801) 456-3820 and request a rate lock.

4.  Be sure to receive a professional inspection.

Taking the seller's word that they have made repairs is not necessarily a smart thing to do. Unless the purchase is a new house with warranties on most equipment, it is highly recommended that the buyer acquire a property inspection, a roof inspection and a termite inspection. Inspection reports are great negotiating tools when it comes to asking the seller to make repairs. If a professional home inspector states that certain repairs need to be done, the seller is more likely to agree to do them. If the seller agrees to do the repairs, have the inspector verify that they are done prior to close of escrow. Do not assume that everything has been done the way it was promised.

5.  Procure homeowners insurance prior to closing.

Buyers should start shopping for insurance as soon as an offer has been accepted. Many buyers wait until the last minute to get insurance and then they have little time to shop around for the best policy. Our staff of loan coordinators and their assistants will guide buyers in finding the right plan. Lowrates is contracted with many prestigious nationwide Homeowners Insurance carriers. We can provide a quote, set up the policy, and collect for that policy through the close of escrow. We talk to the buyer to determine which insurance provider should be used. We will happily quote our products against any of our competitors products. If we can save you money, we will let you know!! We can set up these policies within 30 minutes of receipt of the application.

6.  Read all documents prior to signing them.

Time and effort should be spent reading any and all documents. It is advisable for buyers to ask for a copy of all the loan papers at the close of escrow. This allows ample time to review these documents, review any verbal agreements that may not be included in the written documents and get any questions answered. However, buyers should not expect to read all documents during the closing. There is rarely ever enough time to do that. Lowrates is designed to inform borrowers prior to closing so that buyers feel completely comfortable with the terms at closing.

7.  Schedule your moving plans carefully.

Buyers should allow for a 5-7 day overlap between closing and moving. Example: If one expects to move out of their prior residence on a Friday and into their new residence over the weekend, they will notify their landlord to end their lease on that Friday. They then arrange for movers to help on that same day. If their loan closing gets delayed until the following Tuesday, they may become homeless! New tenants could be moving into their apartment and the movers could charge the buyers for wasting their time. The buyers could be forced to live in a motel for a couple of days! In the long run, it is not nearly as expensive to plan ahead to achieve peace of mind.