Buying your first home is an extremely exciting affair, especially when you have found your dream home. You may be buying an overpriced home, but that does not really matter since youre getting a loan to cover the costs. However, if the loan itself is too much, you will end up having to pay for the mistake you have made for the next 15 or 30 years. You definitely do not want to be paying off some incredibly high monthly payments for the next thirty years. This is why you must spend the same amount of time finding a good loan deal as you did in finding your dream home.
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.
While applying to a bank, you are required to fill out a number of forms and get a number of documents before applying for the home loan. Banks have a tendency to treat you like an account number rather than a person who desperately needs a home loan. This is why you should not approach a bank to get a loan for your dream home.
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.
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.
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