Shopping for a home loan is really no different from hunting down any other great deal. You just need to have a plan of attack and find the best deal for you.
Comparing Home Loans
When you start your hunt, make sure to look around at what is available. First find general rates that are being offered by looking around online for current info, and then track down the rates you can receive based on your own data. You can do this by contacting individual lenders, or you may also want to use an online home loan comparison service to save time. Just make sure to request equivalent quotes. For example, comparing rates from a 30 year term loan to a 15 year term loan won’t be as helpful as looking at the same loan terms from different lenders and seeing what sticks out. Once you determine what terms you are looking for, just request those quotes as you proceed.
Choosing Your Lender
Once you review the rates you were able to find, make sure to choose a lender that offers a great interest rate for the term you are looking for that also has a solid reputation. Having a 3% loan for 30 years with a bank that is hard to work with turns it into a bad deal. You can find reviews and rankings of lenders online. You could also ask friends and family for their recommendations. Try making a quick mental note of anyone you know that just bought a home. Those people will be the most likely to be able to give you solid recommendations.
Once you determine which lenders are even worth working with, you can look at your comparisons and choose the deal best for you. Normally, you will want the lowest rate you can get. But make sure you aren’t overlooking anything like higher fees that will eat your savings.
For example, Loan A could be at 4% and Loan B could be 4.25%. Loan A isn’t automatically the best deal if you have to pay more money up front to get that rate. Remember to work out all of the math before you make your final choice.
Enjoying Your Choice
In the end, you will hopefully be able to find a term you want with a rate you love. Now is definitely a great time to get a loan if you were in the housing market anyway. Rates are lower than ever, so if you have good credit and a great job history, this is your time to shine.