If you and your partner have been working on your credit scores and savings with the intention of getting a home as soon as possible, you may be ready to sign on the dotted line immediately. Though the promise of homeownership is exciting, you will need to get the right kind of loan in order to make your purchase financially comfortable. Here are some ways to compare home loans based on rates and more.
Consider an easygoing bank
When you get a mortgage, you will have to undergo the underwriting process. This means that the mortgage writer will look at your credit report in detail. if you want to make sure that there are no problems during the underwriting process after you have selected a home, go with an easygoing bank. A bank that is easy to gain approval for credit lines with is likely to be similar in the mortgage department as well. If you ever have mortgage issues in the future, an easy-approval bank may already have programs available for you to take advantage of to keep your home.
Look at the home loan rates in comparison to neighboring states
If you live on the border between your home state and another state, you should look at the home loan rates in both states. If the loan rates in the neighboring state are substantially lower than your home state, you may consider looking for homes that are on the other side of the border. It may also be a good idea to seek out banks in the neighboring state to determine if they can give you a good deal on your mortgage rates.
Consider the down payment versus points math
Some mortgage lenders will require you to put down 20% of the home cost in order to receive the home loan through their company. Other banks and mortgage lending programs will permit buyers to pay a reduced down payment and closing costs. If you want to strike a good deal on a lower mortgage rate, you can look for a bank program that offers buyers a reduced down payment. With the money left over from the 20% that you have saved for your down payment, you can purchase mortgage points, which will lower your interest rate. Coupled with a good deal on a mortgage loan, buying points can decrease the amount of interest you will pay for your home to a significant degree. This means that you will be able to own your home outright for much less over the purchase price than many buyers traditionally end up with.
For additional information and advice, contact a lender like Premium Mortgage Corp.Share
5 May 2017
I always wanted to buy my own home and after saving enough money for a down payment, I decided that it was time. Before I started looking at houses, I talked with a loan officer about financing. I wanted to know how much money I could borrow so I could look at houses in that price range. I was very happy after my meeting at the loan company and I was ready to start house hunting. My name is Jarod Spangler and I'm now a homeowner. If you have the dream of owning your own home, I think you'll find my blog of help to you. I've documented my journey of saving money, securing a loan and purchasing a house. To help you become a homeowner too, I'm offering advice and tips of things that I've learned along the way.