All Articles Tagged "home loan"
Shop Around: How To Get The Best Deal On A Home Loan
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Applying for a home loan can be overwhelming — what with the paperwork, credit requirements, terms and other banking jargon. But don’t be deterred. Just as you would comparison shop for any big-ticket purchase, do the same when it coms to loans. Various banks will offer you different rates and terms. Select the one that’s best for your financial situation.
There are the things you should do before going shopping, according to Charon D. Darris, VP and senior business banker for New York City’s, KeyBank Corp. “Know your credit scores and credit reports,” he said in an email. The three credit rating services are Experian, TransUnion, and Equifax. “These reports and scores can differ from company to company. It’s important you pull all three to ensure you have a comprehensive picture of your full credit profile and can proactively address any discrepancies you may uncover.”
Darris suggests using “an online mortgage calculator” to first do your calculations at home. “Most banks have a section of their website that will estimate what size loan you can handle given your income, property taxes, and other deductions,” he explains.
And before you hit the major banks, consider the smaller institutions. “Start with community banks. Often people start with the big names like Chase, Bank of America and Citi. However, underwriting standards and pricing are likely to be more negotiable at smaller financial institution,” advises Darris.
Now you’re ready to shop around. Here are a few tips from Darris on what you should ask each bank.
• Will you cover my closing fees? And if not, do you have a cap on closing fees?
• What is maximum tenor will you provide for my loan? (Tenor is the length of time until a loan is due.)
• What is the minimum down payment I will need to provide and when do I need it?
• Would an additional guarantor help the bank be more comfortable?
• Are there any government programs I qualify for?
Armed with knowledge, you’re ready to haggle for the best deal.
How Do I Select The Right Home Loan?
Michelle Thornhill is the Senior Vice President and African American Segment Manager at Wells Fargo/Wachovia. Michelle has over 15 years of experience developing consumer initiatives for diverse audiences in the financial services and non-profit sector. Michelle earned a Bachelor of Science from Virgina Polytechnic Institute and State University, a Master of Science in Administration from Central Michigan University and a Master of Public Administration from Harvard University, the John F. Kennedy School of Government. Michelle resides in Charlotte, N.C. with her husband and two sons.
As you prepare to buy a home, you may be applying for financing. Consider your current and future financial situation when deciding how much you can afford in a mortgage payment. Think about the type of loan you may want. Are you comfortable with an adjustable interest rate or do you prefer a fixed rate? Although adjustable interest rates tend to be lower, you might be more comfortable with a mortgage payment that is stable and predictable, as with a fixed interest rate. Take into consideration how you will be using the loan. Someone buying a fixer-upper might need a different loan than someone buying a newly constructed home. Wells Fargo’s Home Loan Workbench is an online tool that can help you find the right mortgage to fit your needs. You can compare loan scenarios and request a free consultation.
For more financial tips and information, visit wellsfargo.com/mortgage.
Home Loan Demand Up as Purchase Activity Gains
(CNBC/ Reuters) – The four-week moving average of mortgage applications, which smoothes the volatile weekly figures, was up 2.2 percent.
The MBA’s seasonally adjusted purchase index increased 6.8 percent, hitting its highest level since the week ended Oct. 30.
Michael Fratantoni, the MBA’s vice president of research and economics, said the activity may reflect the looming expiration of a homebuyer tax credit, just as many homebuyers in October had rushed to get loans closed before the original expiration of the tax credit.
Home Loan Demand Up as Purchase Activity Gains
(CNBC/ Reuters) – The four-week moving average of mortgage applications, which smoothes the volatile weekly figures, was up 2.2 percent.
The MBA’s seasonally adjusted purchase index increased 6.8 percent, hitting its highest level since the week ended Oct. 30.
Michael Fratantoni, the MBA’s vice president of research and economics, said the activity may reflect the looming expiration of a homebuyer tax credit, just as many homebuyers in October had rushed to get loans closed before the original expiration of the tax credit.
