Get Facts on Home Loan and Interest Rates
Despite What You May Have Heard, It’s Still Possible to Score a Great Rate on a Home Loan
Shopping for the right home loan can seem overwhelming if you’re not equipped with the right information. That’s where E-LOAN comes in. We’ll help you get informed before you hit the street in search of your dream home.
Get the know-how on interest rates
Interest rates fluctuate, meaning they’re historically low one day and higher a day later. Sometimes they flip on you by the hour. Be open with your loan officer and find out how rate changes can affect your potential mortgage payment and loan qualification outlook.
Lock in your rate and do it early
Locking in your rate early in the loan process is one way to protect yourself from interest rate hikes. It’s like a guarantee from your lender that you’ll keep a certain interest rate for the duration of your loan. Again, talk to your loan officer first and ask him/her to guide you regarding the right time to lock in your rate.
Know your credit score before you apply for a loan
The better your history appears, the more attractive you become as a loan customer. In fact, a better credit score generally leads to a better interest rate. Understanding why your credit score is important now will help you determine the type of loan you can qualify for.
Feel free to compare loans and lenders
Having options is an important part of any loan process. Terms will vary depending on the lender so it’s important that you know the benefits and risks and compare rates and closing costs before making a final decision on a loan.
Consider an FHA loan
FHA loans are mortgages insured by the Federal Housing Administration that offer competitive interest rates and lower down payments. That makes the qualification process much easier for first-time homebuyers. Two quick facts about FHA loans:
- the minimum down payment is 3.5 percent of the home’s purchase price
- FHA loans require mortgage insurance
Scoring a great rate on a home loan is just one step in the home buying process. Check out the links below for more quick tips, loan calculators and other helpful tools from