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Tips for Getting a Home Loan

By
Real Estate Broker/Owner with ICON Realty Partners, LLC - Indianapolis

Indianapolis Home LoansObtaining a home loan is often a tricky prospect, as there are a number of factors to consider beyond the interest rate. In short, it is best to investigate all aspects of obtaining and securing a home loan before committing to any particular lender or home loan program. Here is a list of common sense tips that will help you when deciding on a home loan program:

  • Just because a lender provides you with a “maximum loan” amount doesn’t mean you should consider it. A maximum loan amount is the amount the lender feels that you can comfortably afford; however, your personal finances may dictate something different. In other words, taking out the maximum loan amount may simply be too much for you to handle, so consider every aspect of your finances when determining a reasonable mortgage amount.
  • Look beyond the loan rate when deciding upon a home loan program. Just because you found a home loan program that boasts a great rate doesn’t mean it is the best loan for you. In short, there is far more than meets the eye when it comes to home loan, including points, closing costs and related fees, so get all of the necessary information about a home loan program before you assume you are getting the best deal.
  • Think carefully when deciding whether an adjustable rate mortgage or a fixed rate mortgage is right for you. Adjustable rate mortgages may come with lower mortgage payments, which can be quite attractive, but at some point the rates will change and likely stick you with higher mortgage payments. Fixed rate mortgages, on the other hand, are fixed for the life of the loan, thereby providing a good deal of financial stability for homeowners.
  • If you snag a great home loan rate, lock it in. Most lenders will provide something in writing regarding locking in a home loan rate, so make sure to understand this information so you can be sure you get the same, low rate your lender promised you.
  • If you want to get the lowest home loan rates, make sure you come to the table with a good down payment. In short, the best loan programs and rates are preserved for individuals who have large down payments of at least 20 percent and, of course, good credit scores to go along with it.

Author Bio: Ana is a real estate agent located in Dallas, Texas and assists apartment renters find great deals on Dallas Apartments. To learn more about the Dallas area and to view Dallas commercial properties, please visit her website.