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, 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
First, compare interest rates. Rates can — and do — change regularly and sometimes quickly, so try to stay on top of this with the help of a mortgage professional, who has current, up- to-date knowledge of the real estate market and changing interest rates. It’s pretty straightforward to get mortgage interest rate quotes from banks and mortgage lenders, since most of these companies offer their services, including updated interest rates, online. If you need help with rate comparison online, use your broker as a resource. Generally, you want to be looking for low interest rates, but your broker can advise you more of the specifics. It’s also advisable to research any and all associated fees attached to the advertised rates as well as interview whoever is handling the loan, asking important and relevant questions.
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