everyone’s time.
Once you have found the right home within your budget (please refer to Chapter 15 for a guide to searching for the right home and the overall home-search process), how do you get the best mortgage deal? Follow the steps below to get on the right track and get the best loan deal that works for you.
Step #1. Be Prepared Financially
I’ve said it before, and I’ll say it again: you must be financially prepared before you attempt to lock in a mortgage rate. In fact, financial preparation is key to the entire home-buying process, and you need to start here. Think about it. What’s the point of searching for a new home, finding “the one,” locking in a great rate, and even trying to put in an offer, only to have it all fall apart because you aren’t prepared financially? You’ve not only lost out on a great loan rate, but you’ve also wasted time and energy, which is definitely not something you need while you’re in the process of downsizing! To refresh your memory, some of the pieces of financial preparation include: • 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, and 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
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