With the spring real estate season going strong in Northern Virginia, you may be wondering how to finance your home. The best advice is to shop around for a mortgage and find the best financial lender for you. This may sound easy enough, but where does one begin to shop for a mortgage?
First things first: find out your credit score. Go to one lender you trust for your credit score and use it to share with other lenders. Too many inquiries into your credit score could actually lower your score. This lender can help you establish a baseline in price comparison. You can compare Federal Housing Administration and conventional financing. You can also discuss your loan term options with the lender so you can make an informed decision when you speak to other financial institutions and lenders.
Set aside some time to prepare yourself so that you can get the most out of each conversation. Determine how much of a down payment you can afford. Know when you want to close, because the length of your lock-in period will impact your mortgage rate. To get a feel for the recent mortgage rates, check the weekly primary mortgage market survey – this shows average rates on a weekly basis.
When it comes to contacting financial institutions, make up a list of a mix of community banks, regional banks, and credit unions. By doing this, you can expose yourself to various interest rates and financial promotions. Because interest rates fluctuate constantly, it’s a good idea to call each institution on the same day if possible.
Be sure to ask about fees associated with the loan. It’s important not to compare based on interest rates alone. Sometimes a loan with a low interest rate will have high fees associated with it. One of the largest fees with loans is points; each point is equal to 1% of your loan. Discuss the terms of the loan with the lender to know if you do pay points or if you do not pay points. Most lenders recommend paying points if you intend to stay in your home long term, in order to keep interest rates low.
If all this financial talk leaves your head spinning, don’t worry! At JC Advantage, we have the knowledge and experience to help you find the best possible mortgage rate. Our team of professionals can assist with any financial questions you may have. Call us today at 703-442-0007 or stop by the office at 8245 Boone Blvd, Suite 410 in Vienna. If you prefer, contact me directly by email at conor@jcadvantage.com.
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