The process of purchasing your dream home can be an exciting, complicated and daunting experience all rolled into one. One of those challenges you will undoubtedly face is attempting to get the best possible mortgage rate for your home loan. Your lender knows which factors, both obvious and hidden, determine your mortgage rate. This means it’s only fair that you know this information, too. Therefore, the following list includes some of the hidden factors that can affect the rate you receive for your mortgage loan.
Often, buyers believe that because they have little or no debts, a healthy family and a perfect credit score that their mortgage rate won’t be affected. Unfortunately, this cannot be further from the truth. Although lenders do look at those factors, there are a couple of hidden ones you should know about it. These include the presence of pets in your home, past claims, and even the location of your home. All these factors should be focused on and discussed with your lender when negotiating the terms of your loan.
A misconception regarding bank mortgage loans and their rates is that the information told to you will be the same when you sign the document. The fact is that policy changes do happen and can occur during the signing process. City Creek Mortgage warns that interest rates are often kept hidden by companies. Therefore, it is incredibly important to review your agreement prior to signing it. By law, your lender must provide you with a copy of your closing disclosure, which should be reviewed carefully.
Are you having trouble coming up with the closing cost? Often, lenders will recommend utilizing their lender credit to cover this cost. When you choose to opt-in, you pay considerably less for this cost, but it comes with a price. If you don’t carefully read the stipulations regarding what might seem like an incredible deal, you can end up paying a high interest rate. Keep in mind that some lenders may offer you this deal without raising your rate, so make sure to communicate with your bank representative for details.
Obtaining a mortgage can be a complex process that can take a toll on a person. Through gathering the proper information regarding your specific situation, a good outcome can be obtained. Thus, it is highly recommended for soon-to-be buyers to adhere to the list of tips posted above.
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