The entire mortgage process can be very confusing and a cause for worry for many but knowing a few simple facts before you start the application can help prepare you tobe successful. In this article, we will go over some of those facts to make the process ofgetting a mortgage for your new Fort Lauderdale homeeasier and less stressful.
You Can Refinance Your Home
If signing a fixed rate mortgage makes you nervous, you should know that you can refinance ifthe rate that you sign on with ends up being higher than the interest rate later on. However, the ability to do this does depend on how long you have had your mortgage and if you still qualify financially.
Learn About APR and What Yours Will Be
By calculating your annual percentage rate (APR), you can determine what the overall cost of your house will be throughout the life of your home loan. This will help you make decisions such as if you should make extra house payments or put massive windfalls of money into the home to help save money in the long run.
The Financial Institution That You Borrow from May Sell Your Mortgage
Sometimes your original mortgage lender sells your home loan to a new financial institution. All this means is that your bills may come from a different bank, or your mortgage paperwork could be titled to a different lender; however, the terms of your loan can not legally change.
Each Lender Has Unique Costs
Every mortgage lender, not just those in the Fort Lauderdale area, have their own set of rules that dictatequalification for a loan through them as well as fees for the home loan process. When you are shopping for a mortgage, it is always best to ask about these fees and not just about the mortgage rate itself. Here are some of the charges that can vary depending on the lender that you choose.
• Application Fee
• Loan Origination Fee
• Closing Cost Fees
• Lender Fees
• Document Fees
Mortgage Rates are Constantly Changing
Mortgage rates fluctuate daily asthey are impactedby the economy, local housing markets, and the borrower’s finances, andeach lender offers different interest rates. When you shop for rates, it can be helpful to get them locked for a set number of days while you compare and look for a home.
Your Credit Score Really Does Matter
Many factors determine your worthiness of loan approval. One of the essential things that a lender looks at is your credit score. However, as a borrower, your credit score determines a lot more than just your approval or denial. In fact, as you go through the mortgage process, you will find that it affectsthe loan term, the amount of a down payment you have to pay, and can also drastically alter the interest rate your lender offers
You Can Lower Your Closing Costs
Depending on the mortgage program you are using, you may owe less closing costs than you thought. You can also negotiate that the seller pays some of the closing costs as well. Be sure to talk to your lender about the options they provide to include some of the closing costs in your home loan. It is likely with one of these options you can reduce the portion you have to pay upfront for closing on your new house.
Getting Better Mortgage Rates is Possible
There are a few ways that you can get a lender to offer you better rates. Having a lower interest rate, by even just a few points of a percentage, can mean a savings of thousands of dollars over the term of your loan. Here are a few ways to get a lower interest rate.
Having great credit
Choosing an adjustable rate mortgage
Accepting a shorter-term loan
Placing a more substantial down payment
Bankruptcy and Foreclosure do not Mean that You Cannot Get a Mortgage
The rumors that having a past bankruptcy or a foreclosure in your financial history prevent you from obtaining a mortgage justaren’t true. Multiple home loan programs are availablefor people who need a leg up or who might not have the best credit. If this is the case for you, be sure to talk to your lender about the options they mayhave for you.
Low and $0 Down Payment
Among the variety of mortgage programs that are available some allow for rather small down payments. In fact, some programs even have $0 down options. Again, you should talk to a lender about these programs and your qualifications for them.
Choosing the Best Lender
Here at NHL Lending, we have an experienced loan team that can discuss your financial profile with you as well as the mortgage rates that we offer here in the Fort Lauderdale area. Contact ustoday, so that we can assist you with the mortgage process.