Shopping For The Best Home
Loan
Finding the perfect home
is a task, but shopping for the best home loan can be even more tedious. With so many lenders promising low rates,
closing costs and little or no down payment requirements, it's often difficult
to know which way to turn. Luckily,
there are several steps that you can take to find the right lender for your
individual needs.
Assess Your Situation
Do you know what your
credit score is? If not, you
should. Most lenders rely on this triple
digit number to determine both your creditworthiness and interest rates. If you have excellent credit, you can
probably work with almost any lender. If
you have severe blemishes in your financial past, however, finding the right
lender may require a little more footwork.
How much money do you have
for a down payment? If you are on a
budget, you will need to choose a lender that can help to get you into a home
with a minimal down payment. Knowing
where you stand will give you a good idea as to which lender you need to work
with.
Compare Rates
As is the case with
anything in life, it pays to shop wisely.
Because a home is the largest investment that most people will ever
make, it stands to reason that comparison shopping is a must. As you speak with various lenders, ask about
their rates, loan terms, qualification process and down payment requirements.
Interest rates change
often, which means locking in your rates when they are low can save you a
bundle of money. Because there are so
many lenders competing for your business, you will be greeted with plenty of
appealing offers, including low rates, closing costs and down payment
requirements.
Demand The Best
You are the one buying the
home, so you should be the one to choose the length of your loan term. With the exception of a situation where
payments are simply unaffordable, it's up to you to decide how long you want to
pay for a house. Many homebuyers prefer
a longer loan term to keep the payments low, while others want to get the home
paid for as quickly as possible with a shorter term. It's important to keep in mind that the
longer you pay for a home, the more money you will end up spending in interest.
It's a good idea to talk to your lender about their willingness to
accommodate your needs. If you're in
doubt about which lender to choose or are new to the area and need a little
guidance, ask your Premier Beach Realty Agent for a referral.
He/she knows the business and will be more than happy to assist you in
making your dream of home
