Buying a home, of course, is a major investment. In fact, buying a home may end up being the largest investment you will ever make. Saving money on a home loan is highly advisable and is easier than you may think.
When you apply for a home loan, make sure you have a high credit score. This is common sense in the world of home loans. Poor credit equals either a rejection of the loan or a very high interest rate.
Check your credit report before you apply, and make sure you pull reports from all credit bureaus because your home loan provider uses all credit reports in determining the buyer's creditworthiness and ability to repay the home loan. If your reports have mistakes, get the mistakes corrected.
Pay down your credit card balances and make your payments on time. Those two factors influence your credit report more than anything.
Always shop around and collect more than one home loan quote. Lending is a competitive business, so consequentially lenders compete for your money. They are always willing to lower their quote if a competitor is bidding for your service. Use this benefit to your advantage.
It's always advisable to ask the seller to pay your closing costs. Selling costs are expenses paid when you obtain the home loan. The selling costs can range between 3-7% of the total home's value, including points, taxes, title insurance, financing, and other settlement costs.
If the seller will not cover the closing costs, inform the bank and discuss lowering the closing rate. The bank will likely work with you, so do not be afraid to ask.
Purchasing a new home is an overwhelming experience, and unless you have millions of dollars to spend, you are going to need a home loan. Trust the lender as a friend and allow them to work with you. But always do your homework and make sure you are getting the best deal possible. - 29904
When you apply for a home loan, make sure you have a high credit score. This is common sense in the world of home loans. Poor credit equals either a rejection of the loan or a very high interest rate.
Check your credit report before you apply, and make sure you pull reports from all credit bureaus because your home loan provider uses all credit reports in determining the buyer's creditworthiness and ability to repay the home loan. If your reports have mistakes, get the mistakes corrected.
Pay down your credit card balances and make your payments on time. Those two factors influence your credit report more than anything.
Always shop around and collect more than one home loan quote. Lending is a competitive business, so consequentially lenders compete for your money. They are always willing to lower their quote if a competitor is bidding for your service. Use this benefit to your advantage.
It's always advisable to ask the seller to pay your closing costs. Selling costs are expenses paid when you obtain the home loan. The selling costs can range between 3-7% of the total home's value, including points, taxes, title insurance, financing, and other settlement costs.
If the seller will not cover the closing costs, inform the bank and discuss lowering the closing rate. The bank will likely work with you, so do not be afraid to ask.
Purchasing a new home is an overwhelming experience, and unless you have millions of dollars to spend, you are going to need a home loan. Trust the lender as a friend and allow them to work with you. But always do your homework and make sure you are getting the best deal possible. - 29904
About the Author:
Tom Martens is the content coordinator for South Arica?s leading Homeloans portal which amongst others offers Bond origination services for all major banks.
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