Find the Best Mortgage for You
One of the most crucial steps in buying a new home is getting the mortgage that is the best for you. Thankfully, the Denver movers have worked with many homeowners, buyers and sellers and have a few insider tips to share on the mortgage game. One of first things to consider when looking for the best rate is figuring out your limit. Decide on the maximum rate by creating a budget in order to figure out how much you can afford.
The first thing you should do is retrieve your credit scores. Sharing your credit scores with lenders on your own is a better option, rather than having each lender one pull it multiple times, which can ultimately lower your score. It seems odd, but the more your score is checked, the more suspicious it looks, thus lowering your score.
When shopping for a lender, find out if they’re great on service. Get recommendations from family and friends. After you’ve narrowed it down to two or three lenders, compare their specific rates and see if they are willing to be flexible with you.
With some preparation and research, you can save big if you get the right mortgage rate. For example, on a 30-year mortgage for a $300,000 house, a homeowner would pay approximately $1,520 each month at a 4.5 percent rate. If the homeowner was locked in at a slightly higher rate of 5.10 percent, it would increase the monthly mortgage payments to $1,633, which would make a difference of $40,680 in 30 years. That’s a significant difference!
Compare methods of financing to see what kind of loan will meet your needs. The lender should be able to compare loan terms with conventional methods of financing so you can make an informed decision on which loan terms best suits you. You want to jump on the best rate, which mostly involves good timing. The rate lock is a contract with the lender that guarantees you a prevailing interest rate.
Your best bet involves checking with a variety of lending options, such as a direct lender, a credit union, and a community bank. Fees, rates, and other variables will also be weighed and distributed differently by each lending entity, so it is important to see what works best for you.
You must also agree to buy the loan at that rate within a specific time period, usually in 60 days. If the rate rises, you’re covered. Once everything is squared away, decide when you want to close. Discuss your intended target date with the lender and ask about the charges for loan lock periods. You want to lock in the best rate for the right length of time.