There are still some bright spots for home buyers here in Central Florida. Knowing how and where to get a home loan with the best mortgage interest rate, is a good place to start.
Step by step process to getting the best mortgage interest rate
Have a financial checkup
Buying a home is a major purchase, which is why the borrowers’ finances are really looked into before getting a home loan.
So, it is important you are financially prepared for owning a home. How much home can you afford, do you have enough for a down payment, and closing costs?
Don’t worry, the professionals at Palm State Mortgage can help you every step of the way and answer all your questions.
Identify the right mortgage
There are several types of loans available for homes. Choosing the best one for your financial situation and priorities makes a huge difference.
Government backed or conventional loans
Conventional loan
Aren’t insured by the government so they tend to have stricter qualification requirements, but have fewer hurdles during the application process.
FHA loans
Are loans insured by the Federal Housing Administration. They allow a gift money as a down payment and have a more lenient credit store.
VA loans
Backed by the Department of Veterans Affairs. Often requires little to no down payment and are available to veterans or active service members and their families.
Adjustable or fixed rate?
Fixed rate
Fixed rate mortgages are where the interest rate doesn’t change over the course of the loan. You pay the same rate until you sell or refinance the home
Adjustable rate mortgage
Adjustable rate mortgages are a good option when the interest rates are high or you don’t plan to stay a long time in the home. The interest rates start out at a low fixed rate, then fluctuates.
The first step in finding a great interest rate is finding a mortgage broker you can trust! Contact Palm State Mortgage for more information. Don’t forget to check back with us next week for more helpful tips on getting the best mortgage interest rate.
