| How
important is the initial interest rate that is quoted by a lender?
All too often borrowers make a quick decision
based solely on who quotes the lowest rate. Interest
rates vary by the minute with different rates for different programs. Some
lenders, for marketing reasons, quote a lower rate and supplement that rate with
additional fees and charges. You
need to make sure the lender is not lowering one fee while raising another or
lowering the rate while increasing the fees. Most
borrowers find little difference in fees and rates when dealing with reputable
mortgage professionals. Borrowers
should always receive a “Good Faith Estimate” detailing the costs of their
loan.
What
factors, other than interest rates, should I consider?
There are many loans and lenders to choose from.
The differences are not just limited to your income or assets.
The term of the mortgage, whether there’s a prepayment penalty, what
additional fees are being charged, and is the rate fixed or adjustable. Other
factors would include, will the lender provide a good faith estimate at your
first pre-qualification interview, does your lender understand local needs and
conditions, and does your lender have a good reputation for delivering what they
promise. These are only a few of
the factors you must considerer in choosing which loan or lender best fits your
needs. The lenders' job is to
explain the differences while analyzing your particular circumstances, so you
can make an informed decision.
What
loan programs are available for borrowers with "Good Credit"?
Perfect credit does have it’s rewards.
Borrowers with good and above average credit can choose from a wide range
of loan programs that are not available to others. Good credit borrowers
have a broad selection of competitively priced loan programs to select from, as
well as shorter processing times. Stated
income, no ratio, and reduced
documentation loans are just a few. Your
credit score also may be used to determine the interest rate you get on your
mortgage.
Pay attention to your credit
and keep it on the right track. A good credit record will give you a good credit
score. And that’s good news when you go to get a mortgage loan. It
is useful to check your credit standing with a lender before you formally apply
for a home loan this will gives you the opportunity to solve problems or correct
errors on your credit report that are detected during the processing of your
loan without delaying the closing.
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