When buying a home, normally it is essential to obtain a loan from a financial institution. These could be mortgage companies, Credit Unions, commercial Banks and consumer Banks etc. There are many different types of lenders that can give you rates along with fair monthly mortgage payments. Now this will definitely depend upon what your credit score is and how you maintain your debt to income ratio. If you want to go to a one-stop-shop a mortgage broker may be the best alternative instead of going to multiple locations. They typically arrange the transaction or find the lender for you. Part of their job is to maintain strong connections in the financial lending arena and keep their ear to the street with changes in the industry. Since they have access to several different institutions this could mean essentially, you’re casting a wider net to get the best rate and monthly payment possible. The mortgage broker Buffalo NY can help!
Now to ensure you do get the best rate possible, it is important to make sure that there is a contract in place with the mortgage broker. This way they have an incentive to find the best deals and have your best interest in mind when searching and negotiating. However, you should also consider having more than one broker, just as you would in shopping rates with different financial institutions. Some things to consider; What will the APR rate calculate out to or (the annual percentage rate) how many points are paid to the lender or broker on the loan? What the fees will look like for example loan origination, underwriting fees, broker fees or closing costs? Every mortgage broker should be able to give you some type of estimation of what your fees are going to look like. You also have to consider the percentage of the down payment and what the PMI or the (private mortgage insurance) payment is going to be if you are putting less than 20% down. Since there are several different programs like Rural Development Service loans, FHA Loans, VA loans some of these programs require less than 20% down. But typically, the PMI payment is rolled into the monthly cost if the option is less than 20%.
Before all of this is even done you should check to see what your credit score and report looks like. You can obtain a copy of your credit report from www.annualcreditreport.com. Even if it is not in a high number that is mainly desirable you still have options to negotiate. As long as your debt to income ratio is in a good balance typically you can purchase a home with a score as low as 620 FICO. Some things you want to consider are: If you pay your bills on time? How many times your credit report has been pulled or checked? Are you keeping your balances at 30% or lower of the overall amount of credit available? The mortgage brokers here in the Metro Buffalo, NY area there are a lot of good rates in wonderful homes that need new owners. the mortgage industry we can help you with that.
…Continue reading "Tips on Obtaining a Mortgage Loan" »