Watch this short video for some useful tips for the overall home-search process. These include: Take lots of pictures of each. Outside, key rooms, yard, garage and features you care about. Comparing pictures is faster than re-visiting. Document and "score" as you go. Measure — ideally, the same measurements for each place. The Federal Housing and Urban Development agency - HUD - provides a helpful scorecard to use. They recently moved the scorecard; heres the new web address: https://www.hud.gov/sites/documents/CHECKLIST-EN.PDF Alternatively, keeping record on a smartphone with an app or spreadsheet may facilitate the process, especially for couples and families.

Buying a home and renting a home are quite different in the long run. Monthly cost is only part of the picture. Renting does not involve the long-term financial commitments of buying. Renters generally have less responsibility for maintenance. These short-term advantages can cost long-term leverage, though. Renters do not build equity (ownership); where part of each dollar a homeowner pays in a mortgage is coming back to them in equity, rent payments are purely an expense. Home owners also have tax advantages not available to renters. Individual situations aside, home ownership has historically been financially advantageous. The costs — insurance, taxes and upkeep — are generally outweighed by the freedom, security and stability of ownership over time.

Wanting to buy a home and being financially ready to buy a home arent quite the same thing. Your financial situation will affect the process, so you are better off assessing your situation objectively yourself. Here are some of the key factors to know: Do you have the financial resources for the up-front costs of down payment and closing? Do your other debts and commitments leave enough cash flow for mortgage payments and the other costs of ownership? Do you have a steady source of income, such as a job? Is your employment history, particularly in the past few years, stable enough for a lender? Have you met previous debts and obligations on schedule? These questions will come up, and your answers will be verified in the loan process. If you are positive about most of these things, then you are probably in a good position to start looking in earnest.

The Loan Disclosure details the final costs and terms of the loan arrangement. The form and details are set by regulation; heres what you can expect on Page 1. Loan Amount. The total sum you are borrowing. Interest Rate. The % paid to borrow, not including fees. Terms of balloon payment (if there is one). Terms of pre-payment penalties, if applicable. Projected Payments over the life of the loan, including: Principal & Interets Mortgage Insurance Estimates of Escrow Payments, which usually do change over time. Closing Costs – details of expenses required to close the loan. Cash To Close This form must be provided at least 3 business days before loan consummation.

Regulations require lenders to document the final terms of the loan, and to deliver the document – called the Closing Disclosure – at least 3 business days before scheduled loan consummation. The Closing Disclosure cannot be verbal; it must be a digital or paper document. Any changes after deliver of the Closing Disclosure start the clock again: a new Closing Disclosure must be delivered, at least 3 business days before a revised loan consummation date. In a few circumstances, waiver of the 3-day waiting period is possible, but only when this waiting period would trigger an authentic financial emergency.

This video explains the Loan Costs section of the mortgage Loan Estimate form. Key terms for which figures are provided include: Closing Costs: the set of fees involved in transferring title of the property to the buyer. Origination Charges: fees the lender collects for the mortgage process. These may include fees for handling the application itself, as well as "Origination Fees" — paid by the lender to a party that originates your loan, such as a mortgage broker. Points: essentially, a form of prepaid interest. Points are paid at time of the loan to lower the interest rate of the loan. Points may be tax deductible. Underwriting: fees charged by the lender to evaluate loan risks, based on the transaction and the borrowers financial attributes. The Loan Costs section is usually found on Page 2 of the Loan Estimate.

Lenders are required to store transaction records for a number of years. The period differs based on the documents. Escrow Cancellation: 2 years Partial Payment Policy Disclosures: 2 years Loan Estimates: 3 years after loan consummation Closing Disclosures: 5 years after loan consummation If the loan is sold — for example, to a different company for loan servicing — the original lender is only required to provide a copy of the Closing Disclosure to the new owner. Both companies must retain this information, for the remainder of the 5-year period. While digital record storage is common, it is not legally required. The guidelines set for lenders under the TRID regulations do not affect consumer behavior; consumers can keep disclosure records as long as they see fit. .

If the loan you requested is authorized by the lender, on the terms you asked for, a Loan Estimate must be returned to you in 3 business days. However, if the lender decides that the loan is not approved, they do not need to supply the Loan Estimate form. In addition, if you withdraw the mortgage application within the 3-day period, they do not have to supply the Loan Estimate. Bottom line — if a loan is approved and the lender does not provide the Loan Estimate in 3 business days, the lender is not remaining compliant with TRID Regulation Z.