Mortgage Rate News

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If you are thinking about buying a home, now is probably the time to do it. Recent numbers show that both existing home sales and new home sales have increased in recent months, and that means that the housing market may begin its recovery soon. Indeed, even home prices saw an increase recently. Depending on the market you are in, it is possible that the amazing deals being seen right now may not last too much longer. This means that it’s time to make your move. But go careful. You want to get the best home mortgage loan for you.

Jeremy at Generation X Finance has a handy guide on how to get the best home mortgage loan. Some of the things he suggests include:

• Check your credit score and report: You want to make sure that you know your credit score, and what’s in your report. Clean up any issues and fix any mistakes. A good credit score will allow you take advantage of the best rates.
• Figure out what you want: Get an idea of what you can truly afford in terms of a mortgage, and what kind of mortgage you would like. Know what will work best for you, and what the interest rates are right now on the different types of mortgages. For most people, some sort of fixed-rate mortgage works best, but there are some that may benefit from other types of mortgages.
• Shop around: Take your basic information to different mortgage lenders get some initial ideas of what they can do for you. This way, you get a general idea of what is possible. Narrow down the possibilities.
• Get your documents together: Next, get your stuff together. Tax returns, W-2 forms, bank statements, investment account statements and employer contact information will be needed. You will need to have this in order to get approval for a home loan. Having it at the outset can smooth the way — and give mortgage lenders a better idea of the best possible rates.
• Pre-approval: Up to this point, you have been getting pre-qualification. No hard check on your credit, and the mortgage lenders giving you quotes based on what you provide them. When you are ready, you get pre-approved, which means that the bank provides you with something you can take to sellers to show them that you are serious.
• Study the Good Faith Estimate: This should itemize closing costs. Watch out for excessive fees and junk fees. If it looks like this is going to increase the cost unacceptably, you might have to move on.