Buying a home is one of the biggest moments in life. But that doesn’t mean it has to be an experience fraught with anxiety and worry. These days, a person can check home loan lending rates, get their credit score and shop for houses, all from their computer or smartphone. It’s never been easier.
Research Your Home Loan Options
There are issues to keep in mind. The list below represents some smart moves to make before you sign the contract on a home loan. It’s best to take things step-by-step. This is a big financial commitment. It’s important that it happens in the best way possible.
Consider the following issues when shopping for your home loan.
Check Your Credit
Take advantage of the free credit report you can get each year. Lenders use credit scores as a factor on deciding how much they will lend and for setting the interest rate. In the United States, information on getting a free report can be found at the Annual Credit Report site. In Canada, go to the TransUnion site or Equifax.
Shop Around, A Lot
This is the most frequent advice for a new home buyer. There’s a reason for that. Lenders offer a variety of rates. They use different calculations to arrive at those rates. That means one lender can look at the exact same information and make an offer at a different interest rate. Take the time to look at offers from at least several different lenders.
One smart move for many home buyers is to get pre-qualified before even shopping for a home. That way, you will know what you can afford before you fall in love with a property you can’t afford. It also gives you the confidence of already having the funding to make a deal.
Use The Internet
It’s now possible to get quotes on loan rates from many different lenders in one place through Apply & Buy. Serving both those in Canada and the United States, the site has brought together a large variety of trustworthy lenders. By applying, you can quickly learn whether you qualify for a loan.
Don’t Worry About Credit Problems
Many people assume that poor credit, bankruptcy or being under a consumer proposal in Canada means high interest rates. Or, even worse, no loan at all. That is not the case. Many lenders have experience working with those with less than perfect credit. They also have dealt with those in consumer proposals or those who have declared bankruptcy. Just put all the above steps into play, as you would with “perfect credit.” It will lead to the best deals possible.
There are many advantages to owning a home. They include privacy, the growth of equity and tax advantages. While it takes work to do the task properly, it’s worth taking your time and looking for the best loan possible.