The best loan for you may not be the cheapest loan you are being offered. The best loan for you depends upon your financial situation. Maybe paying a little more upfront in points for a lower long term interest rate, or maybe paying nothing upfront with a higher long term rate is best for you. It all depends on each person's personal financial situation. An experienced lender can work the loan up either way for you. Find out about FHA, VA, USDA, and Conventional Loan benefits before you decide what loan to try and qualify for.
Things To Do to Get the Loan at the Best Price
Things To Do to Get the Loan at the Best Price
- Multiple Loan Type programs- Make sure the lender you use offers all available first time home buyer programs- Ask the lender what programs they have available for first time home buyers. Make sure they offer all of them. FHA, VA, USDA, and Conventional.
- Get Multiple Bids- Call a few Lenders that are offering the lowest rates and have them bid for your business.
- Watch Interest Rates- Interest rates change daily. If you decide to float your loan, meaning not locking in the interest rate with the lender. Watch the bond market closely. If interest rates seem to be dropping or rising react accordingly. Until you lock the rate you do not have a guaranteed rate.
- Consider Using a Mortgage Broker over a Bank- Mortgage Brokers often have dozen of investors in their portfolio to price your loan with. Thus, they can shop around for you, trying to find you the lowest possible rate available.
- Negotiate for Lower Fees- Ask for a detailed explanation of the fees being charged. Once you have a detailed list of fees you can then compare the fees and charges of all lenders. Do not be afraid to negotiate.