Financing a Home

Pre-move planning helps to attain a smooth relocation. Prior consideration of how you will finance your new home will therefore take you one step further toward that goal. The following tips will help you obtain a good home owner's loan and a smooth, easy settlement.

• Take time before your house-hunting trip to become familiar with the products and procedures of the loan market in your new location.

• Discover a real estate agent who is competent and experienced with the needs of transferees. These agents understand your need to:
  • work quickly and efficiently;
  • determine and establish a credit limit (and this will take time); and
  • find a mortgage lender who is experienced in working with transferees.

• Expect to encounter regional differences in lending practices. State and local laws differ, time schedules vary and even the terminology changes.

• Pre-apply for financing before leaving home on your search mission. (It's a good idea to accept a recommendation for a lender from your relocation agent, if you have one.)

• Many lenders will allow you to pre-apply for a loan by mail. If approved, you will have a loan guarantee -- a "plus" in a very competitive market.

• Out-of-area transactions do take longer. Allow extra time for letters of verification from employers and creditors to arrive at their destination and for any potential errors in paperwork.

• If unable to get pre-approval before you house hunt, be sure to become pre-qualified for a loan. You won't have the advantage of a guarantee, but you'll know approximately the size of loan you'll be able to obtain.

• Explore non-traditional loans and new loan products. Compare the loans offered by your new lender and calculate their impact on your budget over the next few years.

• Keep in touch with your agent and your loan officer. It never hurts to call regularly to ask:
  • Have inspections or repairs been completed?
  • Have contingencies written into the offer been removed?
  • Has the appraiser completed the appraisal?
  • Have all the necessary verification documents been sent out and received back?
  • Has the preliminary title report been ordered?
  • Has a date been set for the closing (settlement)?

There's a great deal you can do to ensure the smooth success of your new financing. Yes, it does require some time and effort, but with a bit of wise pre-planning and the tenacity to keep your transaction moving, you'll smooth out the bumps on the road to your new home loan.