Another big mistake first time home buyers make to get their home loans is calling up a number of lenders to get quotes. This is certainly a very foolish thing to do since you are letting the lender know that you do not know how to get home loans and they take advantage of your desperate situation. Whenever contacted by phone, most lenders quote a good interest rate just so that they can get your application. Once you are committed to them they will give you a loan at a much higher rate. If you contact by phone, you do not even have any proof of the rate which was quoted by them and thus fall into their trap.
It is very appealing since the interest rate seems extremely low, but later on you will be paying higher interest rates, sometimes more than the current market rate. Do not get fooled by this since it is nothing like an adjustable rate mortgage and is only there to squeeze the most money out of you.
In order to find deals on Home Loans you will need to do a bit of research. Try to get recommendations from friends or family who have already purchased a house and are at least 10 to 15 years in their mortgage loan. Also, it is recommended that you get a number of quotes from different brokers and compare them to see which one is the best. The internet is a great place to find brokers and get some good advice on getting a loan. The key to getting a good home loan is by focusing more on the financing rather than the house itself.
Another very attractive offer lenders provide you with is by giving you a low rate which is only applicable for the first few months of the loan. They will quote a rate which is about 2% lower than the current market rate. This is known as a teaser rate.
Most people who are unaware of how the mortgage process works usually approach banks to get a loan for their dream home. Banks, however, have extremely poor customer service and take a long time to approve the home loan.
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