If you're ready to buy a new house, you're going to need a home lender. In fact, you can simply and conveniently find one online. But remember that you will need to look out for several things in order to ensure that the top priority of your lender is your interests.
Make sure your lender offers options
There are a lot of options other than the traditional 30-year fixed rate mortgage. An ARM (Adjustable Rate Mortgage) or Interest-Only mortgage might be a better fit for you depending on your personal situation and your needs. Or, possibly, you may prefer a loan with a longer or shorter term. In order for you to find the one that would best suit your needs, a good lender should be able to offer you a variety of options. You need to keep an eye out for those lenders who are only pushing one particular type of loan.
Make sure your pre-approval is in writing
There are home lender who will pre-qualify you, but this isn't your guarantee that you will be getting a loan. In most cases, being pre-qualified could actually mean nothing at all. Choose a lender who will "pre-approve" your application instead, which is a more involved process. When you have been pre-approved, this means that your employer, bank, credit card companies, etc. have been contacted by your loan officer. Being pre-approved means that you are more than likely to get the final approval on your loan.
You need to lock in the rate you're quoted
When it comes to interest rates, they can change daily which means they can be down on Monday and sky-high by Friday. There are lenders who will quote you a super low rate to get your business regardless of the fact that by the time your loan is finalized, the rate may change. Ask the lender to lock in the interest rate for 30, 60, or 90 days if he or she quotes you an interest rate. Reputable online home lenders will guarantee you your promised rate even if it takes another month or two until you close the loan.
Once you know your online home lender is willing to offer you options, pre-approve your loan, and lock-in your rate, it's time to compare rates, fees and other charges to make sure you're getting the best deal.
Make sure your lender offers options
There are a lot of options other than the traditional 30-year fixed rate mortgage. An ARM (Adjustable Rate Mortgage) or Interest-Only mortgage might be a better fit for you depending on your personal situation and your needs. Or, possibly, you may prefer a loan with a longer or shorter term. In order for you to find the one that would best suit your needs, a good lender should be able to offer you a variety of options. You need to keep an eye out for those lenders who are only pushing one particular type of loan.
Make sure your pre-approval is in writing
There are home lender who will pre-qualify you, but this isn't your guarantee that you will be getting a loan. In most cases, being pre-qualified could actually mean nothing at all. Choose a lender who will "pre-approve" your application instead, which is a more involved process. When you have been pre-approved, this means that your employer, bank, credit card companies, etc. have been contacted by your loan officer. Being pre-approved means that you are more than likely to get the final approval on your loan.
You need to lock in the rate you're quoted
When it comes to interest rates, they can change daily which means they can be down on Monday and sky-high by Friday. There are lenders who will quote you a super low rate to get your business regardless of the fact that by the time your loan is finalized, the rate may change. Ask the lender to lock in the interest rate for 30, 60, or 90 days if he or she quotes you an interest rate. Reputable online home lenders will guarantee you your promised rate even if it takes another month or two until you close the loan.
Once you know your online home lender is willing to offer you options, pre-approve your loan, and lock-in your rate, it's time to compare rates, fees and other charges to make sure you're getting the best deal.
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