Buying a new property, whether it is your first or tenth, can be a fun experience. But finding a good home is only the start of the process. If you’re like most people, you’ll also have to get a home loan to finance the purchase. Here are five simple tips that can make buying a home on loan easy.
Get Pre-Qualified for Your Loan
Before you start checking out homes in the area, get pre-qualified for a loan. This will help you know how much money you can afford to borrow and what kind of interest rate you’ll likely get on your mortgage. If your current income isn’t enough to qualify for a loan, ask your lender if they have any programs that might help you bridge the gap between what you earn now and what you need for the down payment.
Visit Several Lenders for Quotes
Compare rates quoted by different lenders before choosing one. It’s also a great idea to look at different types of mortgages, such as fixed-rate or adjustable-rate mortgages (ARMs) or even hybrid loans with elements of both ARMs and fixed-rate mortgages.
Check Your Credit Score and Report
Make sure the details listed in your credit report are accurate before applying for a mortgage to avoid paying a higher rate of interest. If you think your credit score is unusually low or if you find any errors in your credit report, it’s important to get these rectified so they don’t affect your lending terms.
Find an Agent Who Specializes in Mortgages
If you are still overwhelmed by the mortgage application process, consider consulting an independent agent who specializes in mortgages. These professionals usually know exactly what’s available and will be able to provide expert advice on what type of loan to pick. They also know which lenders offer what programs and will be able to compare them for you so that you can choose the best one for your situation.
Ask About Fees and Other Costs
Ask questions about fees associated with getting a mortgage or refinancing an existing loan, so you know how much money the mortgage loan is going to cost you. Never make the decision to go with a particular lender based on the interest rate they quote alone.
