7 Tips for Getting a Loan and Choosing a Lender When Buying a Home

person signing a home loan

When you’re navigating today’s housing market, the key is to be prepared. To help you be more prepared, here is a list of tips for getting a loan and choosing a lender that will help prepare potential homebuyers.

1. Know your own financial situation.

The first step before beginning the home loan application process is determining what you can realistically afford. Things to take into consideration are your credit score, how much debt you currently carry, and what type of down payment you are prepared to make.

2. Have your documents ready.

getting a loan for a houseMake sure that you have all your documents ready. Documents that may be required from you include pay stubs, tax returns, and financial statements. You also might be required to present copies of additional monthly payments like car loans, credit cards, and student loans, and any other information that you think will help your banker evaluate your credit request positively.

3. Review the basics.

A great tip to prepare to choose the right mortgage is knowing the fundamentals of the home loan process. Review the basics and make sure you are familiar with interest rates, loan terms and additional fees associated with buying a home.

4. Compare quotes.

For your list of possible lenders, compare quotes for interest rates, closing fees and points and commissions. We offer a variety of loans calculators to help you determine what provides the best value for you and estimate your loan amount, monthly payment, or price of a new home.

5. Choose a trusted lender.

Cardboard cutout of a hand, leaf, and home on grass.You always want to be sure you’re choosing a trusted lender for your home loan. At Tennessee State Bank, our local and experienced lenders will provide the best financing for your needs with fast, courteous service at competitive rates.

6. Read between the lines.

The next tip is to read between the lines. TV ads, telemarketers, and door-to-door salespeople will typically offer fast, easy loans for houses, cars, and home repair. However, they don’t always disclose all of the details. Be sure you read the fine print and remember, if it sounds too good to be true, it probably is.

7. Ask questions.

When in doubt, ask questions! We’re happy to help you answer any questions you have throughout the loan and home buying process. We can also discuss how long the loan process will take and the best way to communicate, whether it’s by phone or email.

About Tennessee State Bank

Tennessee State Bank has been serving our local community for over 48 years. With branches in Sevier County, Knox County, Cocke County, and Jefferson County, we offer convenient banking services in East Tennessee. Whether you’re looking to open a checking account, obtain an auto loan, or apply for a home mortgage, we make the process as simple and straightforward as possible. Tennessee State Bank’s motto is “Banking at its Best!”SM, and we strive to live up to that creed every day. Let us know how we can help you by sending us a message via our Contact Form.

Tennessee State Bank is Member FDIC and an Equal Housing Lender.


“Getting a Loan and Choosing a Lender: What You Need to Know.” American Bankers Association, https://www.aba.com/advocacy/community-programs/housing/get-loan-and-choose-lender