With the FED once again lowering the fed funds rate it may be a great time to explore refinancing your home, condo or investment property. Perhaps you should think about buying your dream home or that second home you have always wanted. So where to start?
During your search for your home loans, you might come across tens and thousands of lenders and financiers who would be promising you a very good mortgage solution. However indulging in some research upfront will make a great deal of difference in being able to find a great deal. The first step is to meet your financier and find out if they offer programs that satisfy your goals and whether or not you qualify under their norms of lending. Along with finding the lowest possible home loan rates, you also need to keep any eye on the foreclosure fees, specific loan programs and any other hidden charges thereof. Different types of properties have different lending terms. terms of the loan that a lender might be able to offer you. So ensure that you disclose the type of your property and purpose of the loan up front in the first meet itself. This will avoid you any last minute hassles. Bankers / financiers do not use the same criterion for underwriting everyone’s mortgage.
Typically, your past credit track record, the valuation to loan ratio, your debt equity ratios, assets, etc. would come under their watchful eyes. Again, the weightage for each of these parameters would be different for each banker / financier / lender as per their underwriting norms. It is necessary to have more than one rate quotes for your mortgage loan. The greater is the ticket size of your mortgage, the better options you would be able to generate for yourself. The more options that you have in terms of number of mortgage buyers the better your loan rates would be. So if you want to have a nice deal on your home loan, invite competition for your banker / financier / lender.