Tips For Finding a Mortgage Lender
In addition to finding a home, you're also responsible for finding a way to pay for it.
Most people have to take out a mortgage in order to cover all the costs associated with the home buying process.
Since there are many lenders waiting to offer their services, you can afford to be picky and find a lender that suits your needs.
Asking the right questions will help you choose an honest lender.
Types of Home Loans Available When visiting a lender, ask them about the types of loans you qualify for.
Most people qualify for a fixed rate or adjustable rate loan.
A fixed rate loan means that the interest you pay on the loan will not change from month to month.
The downside to this type of loan is that if you lock into an interest rate that drops significantly during the year, you cannot ask for a lowered rate.
You could refinance your loan, but you should ask the lender for their policies about refinancing before committing to the loan.
An adjustable rate mortgage loan is a loan with an interest rate that will vary from month to month.
Traditionally given to those who have less than perfect credit, these loans can end up costing you hundreds more each month.
If your income does not support a loan of this nature, you should avoid it if possible.
An honest lender will be able to give you enough information about this type of loan so you can make an informed decision.
After three or more years, you may be able to switch to a fixed rate loan, but you need to ask your lender about the company's policies before signing a loan.
Lender's Fees In addition to asking about interest rates, you should also ask about the fees associated with mortgage loans.
The lender should be able to give you a list of fees and the amount you will be charged.
After going over all the fees associated with your loan, you will be given a Good Faith Estimate.
This is used to give you an idea of how much you will have to pay each month.
Unfortunately, this estimate is usually incorrect.
While many lenders try to come as close as they can, interest rates change daily, so you may end up paying more or less than the estimate.
It can take up to 45 days to process your loan.
During this time,you should create a monthly budget using your GFE.
Adding extra to your budget will help in case the estimate ends up being more than you expected.
It is your right as a home buyer to ask any questions you have about the loan process.
If a lender seems unwilling or unable to answer your questions, you should find another lender.
Most people obtain three estimates before choosing a lender.
In addition to your home being a comfortable place to come home to, it is also an investment.
Choose your lender wisely so you can afford to live in your home for a long time.
Most people have to take out a mortgage in order to cover all the costs associated with the home buying process.
Since there are many lenders waiting to offer their services, you can afford to be picky and find a lender that suits your needs.
Asking the right questions will help you choose an honest lender.
Types of Home Loans Available When visiting a lender, ask them about the types of loans you qualify for.
Most people qualify for a fixed rate or adjustable rate loan.
A fixed rate loan means that the interest you pay on the loan will not change from month to month.
The downside to this type of loan is that if you lock into an interest rate that drops significantly during the year, you cannot ask for a lowered rate.
You could refinance your loan, but you should ask the lender for their policies about refinancing before committing to the loan.
An adjustable rate mortgage loan is a loan with an interest rate that will vary from month to month.
Traditionally given to those who have less than perfect credit, these loans can end up costing you hundreds more each month.
If your income does not support a loan of this nature, you should avoid it if possible.
An honest lender will be able to give you enough information about this type of loan so you can make an informed decision.
After three or more years, you may be able to switch to a fixed rate loan, but you need to ask your lender about the company's policies before signing a loan.
Lender's Fees In addition to asking about interest rates, you should also ask about the fees associated with mortgage loans.
The lender should be able to give you a list of fees and the amount you will be charged.
After going over all the fees associated with your loan, you will be given a Good Faith Estimate.
This is used to give you an idea of how much you will have to pay each month.
Unfortunately, this estimate is usually incorrect.
While many lenders try to come as close as they can, interest rates change daily, so you may end up paying more or less than the estimate.
It can take up to 45 days to process your loan.
During this time,you should create a monthly budget using your GFE.
Adding extra to your budget will help in case the estimate ends up being more than you expected.
It is your right as a home buyer to ask any questions you have about the loan process.
If a lender seems unwilling or unable to answer your questions, you should find another lender.
Most people obtain three estimates before choosing a lender.
In addition to your home being a comfortable place to come home to, it is also an investment.
Choose your lender wisely so you can afford to live in your home for a long time.
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