You’ve done your research, and you’re ready to purchase a home. Your credit report hits the mark, so now you’re ready to start checking out mortgage loan options. This loan can take years to pay off, so it’s a good idea to shop around to pick the best option for you.
Credit scores play a large role in the cost of a mortgage. If the score is lower, it may contribute to higher interest rates and a higher monthly mortgage payment.
A fixed rate mortgage is a great option if you don’t want the interest rate to alter with time. This type of loan has a preset rate, which is typically paid over the span of 15 or 30 years. Longer loan terms will decrease your monthly payment. Over the lifespan of this loan, the interest rate will remain constant.
Adjustable rate mortgages may start with a fixed interest rate, but are subject to change. This means if the insurance and property tax increase over time, you may see this included in the mortgage payment. Mortgages are made up of your property tax, principal, insurance and interest rates. Changes to any of these factors can affect your monthly payment.
Your credit score will help a mortgage lender determine if you’re qualified to take on the loan and can handle the interest rates involved. You want to stay on top of checking your credit history to make sure the score is where it should be. A history of paying your bills on time will work in your favor.
There are so many options available - it isn’t enough to just know the monthly payment. Finding the right fit for a mortgage lender can be a tricky process.
Consult your real estate agent for suggestions. They often have experience with multiple lenders, so they can help you create a list of firms fitting your criteria. This will provide the opportunity to compare interest rates, monthly payments and figure out which option is best for you.
Once you have narrowed down your lender prospects, research their pre-approval letter process. Make sure your credit score is acceptable and then request an approval letter. A pre-approval letter is not an official offer for a loan, but signifies a lender has inquired about your financial state and affirmed you meet requirements to be offered funding. Having a pre-approval letter also shows sellers you’re serious about putting in a valid offer for their property.
When you’re ready to buy a house, check and compare quotes and negotiate loan rates. Make sure your credit score is at a place accepted by most lenders. Once you have found a potential lender, you’ll be well on your way to homeownership.
JoAnn Drabble prides herself in making a "personal investment in each client”. With over ten years of experience working as a paralegal for various law firms, JoAnn brings significant legal expertise to her work. She understands the ins and outs of the real estate business and follows through on her sales from start to finish. She is often praised for her attention to detail in all aspects of a sale.
Working as a full-time professional in the real estate industry for 26 years, JoAnn has continuously been a top sales producer. She attributes her successful sales’ results to the personal relationships that she forges with her clients. Her years of experience combined with her outgoing personality and compassionate nature enable her to understand both the stated and unspoken needs of clients who are buying and selling their homes. JoAnn stays current with changing market conditions and trends in order to provide exceptional service and ensure a timely sale.
Her perseverance and real estate market savvy help her achieve 100% client satisfaction. The relationships that JoAnn forms with clients often last long after the purchase or sale of a home. Her clients’ satisfaction is her top priority and drives her to consistently exceed her performance goals and expand her growing referral base.
