5 Things to Look for in Free Home Loan Quotes

When considering refinancing or purchasing a home, free home loan quotes can be the ideal resource of information. These quotes will give you the information you need regarding the loan and also give you an idea of what the lenders can offer you. Quotes come to you without any obligation and costs, therefore no risks. But always take the responsibility of ensuring all points of the quotes are given due attention and consideration.

Mortgage lenders can offer you these free home loan quotes online. Just giving your name and kind of loan you are interested in will allow you to get a huge amount of information. These 5 things listed are the most important points to look into in every quote you get.

1. Interest Rate

   The interest rate is the price tag of your loan. Always remember that the lower the interest rate typically means the more house you can afford.

2. Term

   When talking about loans, the word “term” pertains to the length. When securing a home mortgage, it is important that you get the right term. Remember that a short term will mean a higher monthly payment.

3. Monthly Payment

   It is important that you get a good balance of the monthly payment and the term of the loan. Does the quote you requested show you a monthly payment amount that you can afford?

4. Closing Costs

   The closing cost is the amount you will need to pay to be able to purchase a loan. Free home loan quotes provided by mortgage lenders present this information to you first hand. Some others do as well, but if in case they don’t – make sure you ask for it. This becomes very important when you refinance to ensure that in the long run you are saving more money than spending it.

5. Borrowed Amount

   The borrowed amount is the amount you borrow from the lender to buy the home you want. Depending on the location of your mortgage, the price of houses can be quite high so it is important that you make sure your borrowed amount will be enough. If not, look around and see if there is another lender that can and will provide you with the terms you need.

Free home loan quotes provided by lenders give you all the above information. What’s left for you to do is to simply compare the options available. One can have a lower interest rate but a longer term. A longer term means longer payment, so in the end, you still pay more. You may also find out some lenders can be less secure than the others, or that some can offer early payoff options - which some lenders do not offer. There are indeed so many options available.

The Top 5 New Home Purchasing Tips

Now is the perfect time to dip your toes in the real estate market and purchase a home. Not only are the interest rates low, but the market is heavy with an astounding amount of homes ready for your choosing. However, before you begin your search, the following tips are sure to help you get ready:

1. Determine How Much You Can Afford:

Before beginning your home search, review your finances and know exactly how much you can afford to spend. Take a look at your monthly income and expenses to determine how much of a down payment you can put down. Don’t forget to factor in real estate taxes and insurance.

2. Work with a Professional:

Select a reputable and successful real estate agent. Not only will they be able to send you homes directly from the Multiple Listing Service, but they can also save you time in your search by weeding out homes that are out of your parameters.

3. Get Pre-approved:

Before you begin looking at homes, speak to a lender and get pre-qualified for your loan. This will help you to find out exactly how much money a bank will lend you and will also come in handy when it’s time to negotiate a price. Educate yourself on the type of loan programs and interest rates that are out there to see which would best suit your family’s needs.

4. Time to Shop for a Home:

Now that you’ve gone over your finances, selected an agent to represent you and have gotten pre-approved, you can start searching for homes. Several factors come in to play like choosing a single family, townhouse or condo; the neighborhood you would like to live in; do you want new construction or a home and area already established; what are the school districts associated with the home? Make sure the real estate agent knows your criteria so you don’t waste any time.

5. Negotiate the Price and Close the Deal:

Once you’ve found the perfect home, it’s time to negotiate the price of purchase. Your real estate agent can give you all the tools necessary to make a fair offer based on homes that are on the market and what they have currently sold for. After you’ve negotiated the price and terms of the contract, hire a reputable home inspector to take a look at the home and determine if it is safe and sound for purchase. Have your real estate attorney thoroughly examine all contracts for your protection. Once your mortgage commitment has been approved, you will be able to close on your home and begin the dream of home ownership.