How to Find the Best Home Loan

Posted by Carey Frankel on Monday, October 17th, 2011 at 1:04pm.

Home loan rate are quite exceptional and, across the board, they are (or already have) reached historic lows. As either a repeat home buyer or a first-time home buyer, you will want to make sure you get the best loan for which you are eligible.

To do this, there are a number of steps to take:

·         Understand your credit score – Without a strong credit score (think above 700), you will likely not be eligible for the best home loans and the best rates. Because of this, it is crucial that, before making any moves regarding a home loan, you order a copy of your credit report from all three credit reporting agencies. Once you have your credit report, carefully review it and make a point to contact the appropriate credit reporting agency if you notice anything that doesn’t look right.

·         Understand your budget – Although a lender will likely provide you with a pre-approval letter that details your maximum home loan amount, it is always best to also do this work yourself. Take into consideration your current living expenses, your projected living expenses in the future, and how much you can comfortably afford taking on regarding a home loan for a Ponte Vedra property. Consider taxes, utilities, home improvements and renovations into the equation.

·         Consider your down payment – Most lenders now require at least 20 percent down for a home loan, although you may consider putting more than 20 percent down. It is important to consider how much to apply toward your home loan, as you will want to leave enough money for an emergency fund.

·         Talk to a professional – Although you can certainly find a wealth of current information regarding home loans and home loan rates via the Internet, one of the most important steps to take is to talk to a lender. A qualified lender will be able to assess your financial situation and let you know which home loan programs for which you are qualified.

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