When buying a home or condo in you will most likely need to obtain a home loan, unless of course you’re paying cash. Although the mortgage industry as a whole has undergone massive changes in the last few years there are still plenty of lenders providing financing for borrowers. A lender can make or break a real estate transaction. There are dozens of loan types and hundreds of loan programs available through thousands of mortgage brokers, bankers, lenders, finance companies, credit unions and even stock brokerage firms. Don't just go with the lowest interest rate. There are many other factors that affect the true cost of the loan, including broker fees, points (each point is one percent of the amount you borrow), prepayment penalties, the loan term, application fees, credit report fee, appraisal and many others. Once you've done the basic calculations and completed a financial statement, you can ask a lender or loan broker for a prequalification letter saying that loan approval for a specified amount is likely based on your income and credit history. Prequalifying lets you determine exactly how much you'll be able to borrow and how much you'll need for a down payment and closing costs. Make sure to use a lender that will work with you to get you the best interest rate and loan program for your specific needs. If you need help finding a lender, we can refer you to a lender that offers the type of home loan that is right for you.