Once you decide to buy a house then the next step is getting your mortgage in order. The interest rate you end up with will depend on a couple of factors including what is happening in the market at the time. You should also check out mortgage rate forecasts for the next year to see of waiting a couple of months won’t end up saving you thousands. However, if rates are predicted to increase then you want to lock in now. Knowing the best time to get a mortgage can save you thousands over the life of the loan. Here are some other considerations in getting your mortgage.
Your credit rating will also have a huge impact on your mortgage and what rate you end up with. If you have less than perfect credit then you are going to pay a higher rate. If the option is available to you then you might want to look into improving your credit score before you start shopping for a mortgage. Even a few points higher can help you in the long run.
You can and should shop around for a mortgage and you also have the ability to negotiate terms as well. If you work with a mortgage broker they will do the shopping on your behalf pitching to various lenders until they find you the best terms and rates. The mortgage company will lock in your interest rate after you are approved however if the interest rate is changing often you may not have the option.
If you have a home picked out to purchase or you are refinancing yours then you are going to need an appraisal, without a proper appraisal then the whole thing can fall apart. This is particularly true if you are refinancing, you may think that your home or property is worth more than it is. Without the appraisal you may not secure the financing you want.
Getting Approval and Signing the Paperwork
Once you have a commitment from a lender then you want to get a hard copy of it. Today mortgage companies will rely on electronic signatures, but you will still want a hard copy in the event that they don’t want to honor their agreement. Mortgage rates in the past couple of years have been pretty stable in and around the 4% range but there is no guarantee that will continue forever.