How to Qualify for the Best Home Mortgage Loans this Year
Potentially you could save thousands of dollars by choosing a lender that offers the best home mortgage rates, terms with the least amount of closing costs. Pricing is an important factor when comparing home loan lenders online. If you want the best home loan terms this year make sure you are organized with income documentation, high credit scores and a completed residential loan application. Nationwide has partnered with many of the best mortgage lenders for house buying, loan consolidation and refinancing.
Getting the Best Home Mortgage Loans
After rising dramatically to 4.5% for a 30 year fixed mortgage after sitting at 3.5% earlier in the year, many homebuyers are concerned with what they can do to ensure that they get the best loan possible for their new home purchase in 2014. Although interest rates have steadied somewhat since the substantial rise earlier this year, there is no reason to believe that they won't climb a little bit further in the near future.
When it comes to getting the best loan available, a perspective buyer can use the following tips to ensure that they find the loan that fits their needs and their budget.
We can help you get assistance securing the best loan for buying a house in 2017.
Research Home Loan Programs
It is difficult to overstate just how poor it is for person to do a little bit of homework on their own before they start looking to find a great home loan. This involves understanding what their credit score is and any potential problems that may be lurking in there.
Things to Consider When Getting a First Time Home Buyer Loan
Get a Pre-Approval Letter from a Good Mortgage Lender
By getting pre-approved, an individual will prove to sellers that they are a buyer that means business. Being pre-approved also allows a person have a better idea of exactly what houses out there are within their price range. When shopping loans, request a pre-qualification letter that spells out the terms you are approved for. This is critical for your realtor to make bids effectively on your behalf.
Understanding Loan Types and Rates
One of the biggest mistakes that any home buyer can make is in not understanding the difference between a fixed interest rate and an adjustable rate mortgage. A fixed rate is just that, an interest rate that will not change during the life of the loan. An adjustable rate, on the other hand, will stay fixed for the first 5 to 7 years and then adjust according to the market. Most experts recommend an adjustable rate mortgage only for individuals who are positive that they will not be in their home for more than a few years.
Choose The Right Loan Terms
Although a 15 year mortgage will likely come with much lower rates than the 30 year loan, most first-time homebuyers won't be able to afford the higher monthly payments that a 15 year loan requires. In most cases, a 15 year loan is only a good choice when it comes to refinancing.
To Lock or Not to Lock
Once a home buyer has found a loan with a good rate, they should consider locking that rate in in order to ensure that they don't face a higher interest rate once it actually comes time to sign the paperwork. Usually for no cost, or for a fee that can be refunded once it is time to close, and interest rate can be locked in.