Many borrowers think that they will have a hard time in finding the best mortgage rate. However, the process can be the very opposite of scary when you are aware of certain tips. The home loan rates have been falling for the past years but things are expected to look up in this new year. Based on various factors including location, loan term, and credit score, a buyer can get hold of the best mortgage rate. In the meantime, you must know that the national average home loan rate on a thirty-year fixed mortgage is 3.65%.
The decision of purchasing a house or condo holds an important place in many people’s hearts. Also, it is one of the biggest financial decisions that you will ever take in life. Needless to say, you would like to get the best mortgage rates in Houston, TX. When you have done enough homework for this crucial financial transaction, you will be in a less painful stage. Many borrowers do not worry about the rates and they go with whatever they are offered. But nevertheless, smart buyers would find the lowest offers for their financial benefit. So, go through different suggestions to understand how you can find the best possible interest rates.
- Saving Enough for a Down Payment
At the time of applying for a loan, the buyer is bound to put down a particular percentage of the home value. Nowadays, the lenders will approve the application with a down payment less than 20% (depends on the mortgage because FHA loan allows 3.5% and 10% down payment). However, the down payment less than 20% is considered to be risky to the lenders. If you can put down 20% or more of the loan value, the home loan rate will be better. Of course, you need not pay private mortgage insurance then. You should check the entire financial situation before putting down the amount. Many lenders need cash reserves that can last for at least 2 months. If a 20% down payment is going to take your assets, you should not consider it.
- Get Help from a Local Lender
If you are confused about finding the best mortgage rates, you can seek the help of a lender. Finding a better rate does not turn out to be everyone’s cup of tea but the lender can assure a good experience. You can ask your friends and colleagues to recommend a lender. Additionally, you can check online reviews to understand whether the person can help you in your present financial situation. Even if the professional lender finds a rate that is half a percent less, you can save a lot.
Another thing you must do is to pick up a suitable mortgage. Are you going to choose a government-backed loan or a conventional mortgage? Does adjustable-rate loan or fixed-rate loan suit the profile? Of course, you need to pay extra attention to building credit. When your mind is well-equipped with information, you can get hold of the best mortgage rates.
Author Bio: Joan Gallardo, a Senior Loan Officer, with 20+ years of experience, here writes on 2 questions to ask the best mortgage lender in Houston when you are about to choose one of the first time home buyer programs in Houston.