It seems mortgage interest rates Mission Viejo are the main concern to a person buying a new home in the area. Well, while many focus on the rate it cost them thousands of dollars in opportunity. In this article we will discuss not only how to get the lowest mortgage rates Mission Viejo, but also how to focus on the entire experience and thus save thousands possibly.
Most borrowers really don’t want the lowest rates. They just think they do. Some low rates would come from a 1 year adjustable loan that would have an extremely low rate. Another example is a 10 year mortgage. Again, a real low rate but the payments are high due to the loan being paid back in 10 years vs the normal 30 years.
Remember that what is outside the property you want is just as important as what is inside. The perfect piece of real estate inside can quite easily be in a noisy area, far from where you need to be or near schools that are not right for you and your family. Not having the right location can cost you in the long run.
When it comes to getting a good interest rate, shop around. Each individual lender sets their interest rate based on the current market rate; however, interest rates can vary from company to company. By shopping around, you can ensure that you will be receiving the lowest interest rate currently available.
FHA loans are made by a lender but insured by FHA. FHA does not make loans, only insures them. The lender is covered by the insurance in case you do not make your payments and thus offer a lower rate on your loan due to the reduced risk. So the home buyer sees a rate advertised and immediately thinks that is the rate they want. What they do not understand is the added cost of the FHA insurance.
The FHA loan would have a 1.75% origination cost added to the loan the day you get it and also a 0.85% yearly cost spread over your monthly payments.This could end up making your low rate loan have a higher payment that a high rate loan. If you are applying for an Mission Viejo FHA home loan or a FHA home loan Irvine, you will want to compare the final payment amount to a conventional loan. Again, getting the lowest mortgage rates Mission Viejo might not always be the best option.
Get pre-approved for a mortgage loan before you even begin looking at homes. This way you can rely on facts rather than emotions once you start going through houses and start wanting what you may not be able to afford. Having a clear number in mind helps you to be more efficient when shopping for a home.
If you are a Vet, you could get a VA home loan Mission Viejo and because VA insures the payments, you get a reduced rate. A senior over the age of 62 could get a reverse mortgage Mission Viejo and rate doesn’t matter so much because there is no monthly payment.
Get your documents ready before you go to a mortgage lender. You should have an idea of the documents they will require, and if you don’t, you can ask ahead of time. Most mortgage lenders will want the same documents, so keep them together in a file folder or a neat stack.
So what is the answer to getting a low rate mortgage Mission Viejo? You can see from some of the information already provided, sometimes the absolute lowest rate is not a good option. Let’s discuss some of the good options for you to consider.
All home buyers need storage areas, so closet space and storage space is very important. Walk in closets are very useful and desirable in bedrooms. Look for extra storage for towels, linens and bathroom items. Extra storage usually makes the home more desirable and easier to sell.
The single way to get a low rate is to choose your lender wisely. You don’t want the lowest rate, you want a good rate with a great lender. Let’s say you begin working with the Mission Viejo Realtors in house lender. The 1st thing you will find is you did not get several rate quotes and thru out the process you will have doubts about the rate you are getting. Do yourself and the Realtors lender a favor. Go get some other rate quotes so you know what you are getting is fair.
Do not sign up with the first mortgage lender that you come across. There are so many out there that you would be doing yourself a disservice by being hasty. You should shop around a bit to make sure that the rate you are being offered is fair and competitive.
Observe your potential new neighborhood at different hours of the day to insure that the activity and the noise levels are to your liking. You may find that what is a quiet little neighborhood during the day is full of life and noise during the late evenings and at night.
The best mortgage rates Mission Viejo will go to those borrowers with a FICA credit score above 720. Before you ever go visit a property to buy, get your credit report. The score is important but also the other items on it. If you have student loans that have deferred payments, they will have to be assigned a payment amount in the qualification process. If you have collection items, they will need to be paid prior to the loan closing.
Getting a new home loan Mission Viejo can be a challenge. Understanding the process will help you not only get a lower rate but also get approved. Getting your credit report all squared away before you apply will save you thousands of dollars. Do not let a prospective lender run your credit. You provide the lender giving you the quote your report you got on your own. This gives them your score without them running credit and saves a hit on your score for the inquiry.
Buying a home has become a lot more affordable in recent years. Home prices have fallen tremendously and the interest rates on mortgages are at historically low levels. Now is the time to look for the home of your dreams and there is a great chance for you to get it at a great price.
In order to be approved for a home loan, you need a good work history. A lot of lenders want you to have a couple of years of working under your belt before you can get a loan. An unstable work history makes you look less responsible. Quitting your job during the loan approval process is not a good idea.
If you have at least 20-25% to put down on a new home purchase, you will get the best rates. If you do’n have the 20% you will not only get a higher rate but also get mortgage insurance added to the payment. Let’s say you are doing a refinance Irvine. You will get the best rates if you have 20% or more equity in the property. A refinance Laguna Niguel or refinance Ladera Ranch would have the same requirements.
Cash challenged buyers can also be on the market to buy a property. The way to go is a lease-to-buy or rent-to-buy agreement. In this case the rent payment, or a part of it, goes towards the down payment of the property. Due to higher monthly rent payments, this is an option only to the serious home buyer.
Make sure that all of your loans and other payments are up to date before you apply for a mortgage. Every delinquency you have is going to impact your credit score, so it is best to pay things off and have a solid payment history before you contact any lenders.
We recently did a mortgage refinance Mission Viejo on a 30 year fixed with a rate of 3.875%. We did a purchase mortgage Irvine at 3.25% that had a 15 year loan on it. We did a $200,000 cash out refinance mortgage Irvine that got a 3.875% rate for a 30 year fixed loan. But, we saw a loan go thru for a purchase in Saugus at 5.25% recently. It just shows you the wide variance that are mostly driven on the borrowers credit and the lender they choose.
If you enjoy making your own decision about your property, such as exterior color, front yard design or fence style you need to choose an area without a Home Owner Association (HOA). These organizations are supported by the homeowners in the neighborhood and are formed to maintain the look and the design of the streets. They can determine what you can plant or what materials you can use. If you want to create a unique home, stay away from areas with HOAs.
The best advice is to get quotes from several lenders and find the one best suited to your situation. If the lender is not able to give you several references you cal call…choose a different lender. If the lender takes longer than 30 days start to finish, to close loans, keep looking. Don’t overlook the fees being charged on your new loan. If you are paying any lender origination fees, keep looking.