Buyers Step 3 and 4.

So you made your budget and you where able to see how much you could spend on your New home. You have been saving for awhile and now you know the money in savings won't push your limits every month. You can stilll have heat in the winter and air conditioning in the summer.

Step 3 is to call you local bank.

You need to tell them how much of a note you want. Banks and lenders sometimes approve people for more than they can afford. Banks and lenders do not budget for toliet paper nor heat:)

Talk to the lender about different options. Ask alot of questions.. Never assume that you understand, if you are not clear ask again and again until you understand.

I reccommend to my clients that they go with a fixed rate, that way there are no surprises in a year or 2. It will be the same note every month. The only items that change would be out of the lenders control. Taxes and Insurances can go up and when they go up it will increase your note...

After you ask questions to your bank and you feel understand most of what is going on ask for a copy of your GOOD FAITH ESTIMATE. This is one of the most important documents, in my opinion, in buying a home. You should get a GOOD FAITH ESTIMATE for every loan option that the lender has discussed with you. This documents allows you to do a couple of things:

1. It shows you or should show you in black and white ALL the cost in buying your home. It will also show how much your new house note is going to be. This estimate should only be off by a little bit, not much. The estimate should only flexuate by the new homes taxes and insurance. You should share this document with your Realtor. They can negioate different items for you in the contract to buy the house based on your good faith. Step 4. Is to call another lender ( a brokerage). They can look at some different options through different lenders that some banks can not. You need to ask the same questions. the answer should be the same. make sure you get a GOOD FAITH ESTIMATE from them as well.

This GOOD FAITH ESTIMATE will also help you compare your bank's estimate to the other lenders.