• checking (and fixing) your credit score • padding your savings account • determining your budget • considering the “hidden” costs involved in purchasing a new home (such as closing costs, property taxes, homeowner’s insurance, maintenance) Bankrate.com adds that “if you lock in a rate too soon and end up going with a different type of loan, your rate lock might be void.”
Step #2. Compare Interest Rates
First, compare interest rates. Rates can — and do — change regularly and sometimes quickly, so try to stay on top of this with the help of a mortgage professional, who has current, up-to-date knowledge of the real estate market and changing interest rates. It’s pretty straightforward to get mortgage interest rate quotes from banks and mortgage lenders, since most of these companies offer their services, including updated interest rates, online. If you need help with rate comparison online, use your broker as a resource. Generally, you want to be looking for low interest rates, but your broker can advise you more of the specifics. It’s also advisable to research any and all associated fees attached to the advertised rates as well as interview whoever is handling the loan, asking important and relevant questions. Something to keep in mind is that you shouldn’t automatically go with the first rate, or the first quote, presented to you. Remember, there any many banks and mortgage-lending companies, all with different rates and options, out there. Do some research and digging to find the best rate and option that works for you and your needs.
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