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Step 2. Applying for a loan
Many first-time home buyers may feel nervous. They may
wonder if they are making the right decision in taking such
a big financial step. Talk to
students about the importance of finding someone who has
been through the home-buying process and can share his or
her feelings and experience. Point out that students will
be less nervous if they know
what to expect at a loan interview. You may want to emphasize
a few of the following points:
1. Both co-borrowers should come to the interview. Some
people also bring an experienced friend along as a second
set of eyes and ears to
remember what was said.
2. It is a good idea to get a copy of the loan application
ahead of time so you can get help filling it out and can
make sure you have all the information. Having to go back
and forth to the lender with missing information is one
of the things that is most likely to slow down the process.
3. Place the information needed in an organized folder.
It helps to have made copies of all the information so it
can be passed over to the lender.
4. It is also a good idea to dress as professionally as
possible and to make sure to arrive on time.
5. It does not hurt to emphasize many times that students
should not sign anything unless they are sure of what they
are signing. Once a loan
application is signed, they are legally obligated.
6. In most cases, a standard loan application form called
the Uniform Residential Loan Application is used.
Some forms included in the student workbook are adapted
from portions of this form. The actual form is four legal
pages long. If you have more advanced students or students
who are close to applying for a loan, it would be a good
idea to get a copy of this form for students to practice
filling out. Any lender will be able to provide the form
to you. Copies are also found
in commercial books about how to buy a house at your library.
Although the form may be intimidating to
your students, it is better for them to become familiar
with it in the
classroom than to see it for the first time at the loan
interview.
7. Remind students that they should not be afraid to ask
questions at the loan interview. They should make sure that
all their questions are answered. They shouldn’t hesitate
to call the lender back if they think of additional questions.
8. If borrowers feel uncomfortable with the lender and
don’t feel their questions are being answered or suspect
they are not being treated fairly, they should decline to
sign anything at that time. They may want to ask for a different
loan officer or locate another lender with whom they are
more comfortable.
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After
comparing lenders, Tom and Mary decided to go with Mary’s
credit union. They were impressed with the way they were
treated at the credit union. John Harris had gone out of
his way to answer all their questions. The interest rate
seemed fair, and they liked the fact that the closing costs
were low. 
What
to bring to a loan interview