If you’re looking forward to buy a home but cannot arrange the total payment for one time purchase, then going for a mortgage is the right choice. A mortgage, popularly known as home loan, is a popular option in the United States and elsewhere.
And the option of mortgage is becoming more and more popular yet tedious to use because of the home market which has gone for a slump. Banks are unwilling when asked for a mortgage loan. They do not want to risk money on mortgages and are utterly defiant.
To solve this mortgage crisis, you need to go out and hunt for maximum number of lenders for a mortgage. This way you can thoroughly go through their offers and select those who offer you an acceptable mortgage rate.
There are many factors that define a good mortgage rate and a good mortgage lender. Some might trick you while some cannot give you assurance. Going all wrong about this can cause you serious accommodation and legal trouble. Hence verification is must. Below you will learn how to land the best mortgage rates.
1. Verification of the Lender:
It is of utmost importance to find a genuine lender. Most people fall for lenders who trick them with misleading marketing promises and offers. A reputed lender is of prime need. He will always get you a reasonable interest rate which you can pay in a long term loan period.
A trickster will dupe you by showing much affection and by offering eye popping deals. But they will keep your eyes popped out with regret if you listen to them.
2. Type of Mortgage:
Depending on the type of Mortgage you take, your mortgage rates will differ. It would be wise if you go through various advantages and disadvantages of every available mortgage type. Knowing these, you will have a prior knowledge about mortgage rates and going for a mortgage that suits you with your financial condition in mind. Having knowledge of every type of mortgage will also safeguard you from tricksters.
3. Internet Research:
The 21st century has heightened the possibilities and feasibilities of wide scale research to its limit. Just by searching on Google, you can find anything you need. And that is why the best way for you to look for mortgage rates is.
There are many lenders who put up their reviews, ratings; etc. and this will help you in wise selection of a mortgage rate that will be most suitable to your situation.
4. Check Your FICO Score:
Before applying for a mortgage, you must check if your FICO score is low, if it is then you must get it in order. It so happens that you are not allowed to apply with a mortgage lender, even if he is really good, all because your FICO score is low and only people with decent enough FICO scores will be accepted for a mortgage deal.
5. Asking the Lenders for a Quote:
After you make a mortgage lender list that have good mortgage programs and rates in offer and are genuine, ask each of these lenders to quote basing on your employment situation and FICO score. By doing this you will have clarity and expect what mortgage rate you will get.
6. Ask Your Realtor:
If you have a realtor with whom you’ve been deriving services, you can ask him for referring you to a lender for mortgage. The advantage of knowing a realtor is that they keep business with the most profitable clients. By this they can be of help by landing you mortgages of lower rates and closing down costs. A realtor also strikes out the possibility of being tricked.
7. Persuasive Negotiation in Case of a Newly Built Home
If you are going for a newly built home, the home builder might pressurize you to deal with the lender of his preference. This is for his personal interest of course as he gets a commission. And in turn for the commission and deal, the lender will offer you some free deals. But if you look at it in a broader manner, it isn’t the best deal.
If you simply go on agreeing with their terms, you will be at a loss. A persuasive negotiation will be of your benefit.
While going for a Mortgage deal, you need to look for the following:
• Time of Installments- The number of months needed to pay the dues
• Insurance Expenses
• Starting Interest Rates
• Fixed Amount (Months)
• Changes in Interest rates
• Total principle Amount Applied
• Taxes applicable for the principle amount (Per Month or Per Annum)
• APR (Annual percentage of rate in interest)
The above ways will help you secure the best and cheapest mortgage rates in the crashing housing market. A good mortgage rate will take you to the next step i.e., to decorate your new home.