We specialize in making the home purchase or refinance process a great experience. Whether this is your first purchase or your 10th, we can make it happen for you!
For most people, a mortgage is one of the biggest long-term financial commitments of their entire lives, so, unsurprisingly, many will take a bit of extra time shopping for a convenient rate.
But, if you don’t have a lot of experience with mortgages, it can be difficult to know what to look for. The Sean Zalmanoff Mortgage Team specializes in making the home purchase or refinance process a great experience. Whether this is your first purchase, your 10th, or you need assistance with the FHA 203k or Fannie Mae Homestyle construction loans – we make it happen for you!
Here are 4 things to consider when shopping for mortgage rates:
1. Your Credit Score
Your credit score tells the lender if you can qualify for one of their loans, as well as the kind of interest rate you’ll pay. Higher credit scores lead to better terms, so it’s worth checking your score before looking for mortgage rates. It’s a good idea to start this process a few months in advance to give yourself some time to correct any errors in your score before you start meeting potential lenders.
2. The Lender
It would help if you looked into your potential lender’s terms and conditions outside the meeting with one of their loan offers. Since they are representatives of specific lenders, two issues could arise:
- They only know the terms and conditions of the lender they work for
- They may not be able to give you the best financial advice
Loan officers don’t know everything, so take the time to review the pros and cons of borrowing money from a particular lender.
3. The Additional Costs
Many borrowers fixate on the interest rate and completely forget about the many additional costs added to their loan. What’s more, a lender can heavily promote a low-interest rate to distract borrowers from high additional costs that increase the mortgage cost tremendously.
From appraisal to underwriting, or even closing costs, these smaller fees can add up to something big in the end, all of which you’ll have to cover! Remember to ask the officer about any additional costs you have to pay for before you agree to their terms.
4. Your Current Finances
The bigger the down payment you can put on a home, the lower the interest rate you’ll have on your mortgage. Lenders view borrowers who put more money upfront on their purchase as a lower risk, and in turn, a bigger down payment reduces the amount of money you need to take. This leads to lower interest rates when you put a 20% down payment versus just a 5% one.
The Better Rate Mortgage Team
Applying for a mortgage can be both an exciting and overwhelming thing to do for many people. Still, a good loan adviser can help you navigate the process with ease and make the right financial decisions for you and your family.
