We’ve all heard about the fantastic interest rates being offered by lenders for home buyers. And, although you are likely to snag a great interest rate in today’s real estate environment, it is important to understand that not all lenders or home loan programs are created equal. In short, not all home loans or home loan programs are right for every Las Colinas home buyer. Here is what you need to do to ensure you are securing the best home loan and the best home loan rate possible:
- Before you begin house hunting, the first place you will want to visit is a local lender. A local lender will be able to review your ability to purchase a home so you can be sure your credit, income and debts are good enough to qualify for a home loan. Your lender will likely perform a credit check and ask you to fill out a preliminary application for a home loan preapproval. Preapprovals are great because they will give you an idea of how much home you can afford. The lender will also educate you on the many loan programs for which you are eligible. There are many loan programs for a myriad of buyers, so it always pays to see which ones are best for you.
- Check the Internet and the newspaper for interest rates. Don’t lock in an interest rate until you have done your homework. Make sure you have found the best loan program for your budget, and then watch interest rates to see where they are going. You can review the latest interest rates from a variety of lenders in the daily newspaper, or you check the Internet, as there are plenty of great sites that compare lenders and their daily rates, side-by-side.
- Look beyond the interest rate. Although the interest rate on a home loan is a big deal, there are many other features of a loan that are important, too. For example, consider whether the loan comes with points. Consider whether the loan is fixed or variable. And consider the term of the loan. In other words, read the fine print so you fully understand a home loan program before you sign on the dotted line.