The way you approach mortgage shopping can literally save thousands of dollars. Take time to understand the system and make educated decisions.

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. "FIRST" Getting pre-approved is fast, easy and free. A written pre-approval includes a completed credit application and a letter guaranteeing you a mortgage to a specified amount. With this done, you won't waste time looking at homes you can't afford. Get pre-approved now - visit http://countrywidelocal.com/emyrominger

Examine your finances. How much can you afford to spend? While a local 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. Your lender will run a credit report for 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. Note: Don't have your credit report pulled by each lender this can effect your score.... 

You may want to Compare. When you're ready to get a loan, explore your options. You can choose either a local 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, compare all 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

 Ask your lender for a written estimate.

Apply for a loan. Lenders will want to know your job tenure, employment stability, income, assets (property, cars, bank accounts and investments) and your liabilities (auto loans, mortgages, installment loans, credit-card debt, household expenses and others). Your local lender may request paycheck stubs, bank account statements and tax returns. 

A Rate Lock - in writing - guarantees you a certain rate and terms for a specified period of time. Lock in all the costs you can, including interest rates and points. You may Lock-in at any time, sooner is usally better. Most lock periods range from 15 to 60 days, this is the average time it takes to process a loan.

Ask about Pre-payment. You can shave years off the length of your mortgage by restructuring the way you pay back your loan. Simply paying more frequently can save thousands in interest. So can making a lump payment toward the principle - or paying a little more each month. These methods are called pre-payment.

Clear up any financial problems. Do you have credit problems or owe money to the IRS? Buying a new home may still be a possiblity. Contact a financial advisor or tax resolution service to find solutions.