With money set aside for a down payment and a credit score that is impressive, the time has come to purchase a first home. Along with finding the right place, it pays to look around and see what the different California mortgage companies have to offer. By looking closely at a few specifics, you'll be able to lock in the best deal and be happy with the arrangement for years to come. Here are some tips that will help.
Fixed or Variable Interest Rate?
One of the first things you'll want to think about is the type of interest rate applied to the mortgage balance. Many California mortgage companies do offer loans with variable rates along with fixed rate mortgages. Which one is right depends a great deal on your preferences and what you think will be happening with the economy a decade from now.
If you have never really looked at mortgages before, it helps to know how variable rate loans work. Most of them start off with a period of between five to ten years where the rate is fixed. During that time, you don't have to worry about the interest rate going up or down. Once that term expires, the interest rate applied to your balance will fluctuate, based on what is happening with the average market rate.
If there are compelling reasons to think that the average interest rate will be lower when the term expires, it is to your advantage to go with a variable rate mortgage. When you are not sure and you like the idea of knowing exactly what you have to pay from one year to the next, then sticking with a fixed rate loan is the best move.
Processing and Other Fees
Never make any assumptions about what sort of additional fees are required by different California mortgage companies. Read the terms of the loan contracts carefully and identify any type of fee or charge that will apply over the life of the loan. Will you be charged a fee for processing each payment?
What sort of service charges apply if you are late with a payment? Are there any additional convenience fees associated with remitting property taxes or paying for homeowners coverage as part of the loan arrangement? Compare plans and see who offers the most competitive fee schedule. Doing so will save a lot of money over the life of the loan. Check out this webpage to learn more.
Reputation of the Lender
Never underestimate the importance of finding out what others think about the lender. Spend some time checking with those in your social network and see what sort of feedback they can provide. It also helps to check consumer sites online and see what type of comments and remarks others have made about any lender you are considering. In the best case scenario, what you will find out is that the lender has a reputation for honesty, integrity, and quick response when a client has a question or concern.
Remember that buying a home is one of the most important investments you'll ever make. Compare different California mortgage companies carefully before accepting any offer. Your hard work will pay off in terms of enjoying a great working relationship with the lender for the next twenty to thirty years.
One of the first things you'll want to think about is the type of interest rate applied to the mortgage balance. Many California mortgage companies do offer loans with variable rates along with fixed rate mortgages. Which one is right depends a great deal on your preferences and what you think will be happening with the economy a decade from now.
If you have never really looked at mortgages before, it helps to know how variable rate loans work. Most of them start off with a period of between five to ten years where the rate is fixed. During that time, you don't have to worry about the interest rate going up or down. Once that term expires, the interest rate applied to your balance will fluctuate, based on what is happening with the average market rate.
If there are compelling reasons to think that the average interest rate will be lower when the term expires, it is to your advantage to go with a variable rate mortgage. When you are not sure and you like the idea of knowing exactly what you have to pay from one year to the next, then sticking with a fixed rate loan is the best move.
Processing and Other Fees
Never make any assumptions about what sort of additional fees are required by different California mortgage companies. Read the terms of the loan contracts carefully and identify any type of fee or charge that will apply over the life of the loan. Will you be charged a fee for processing each payment?
Reputation of the Lender
Never underestimate the importance of finding out what others think about the lender. Spend some time checking with those in your social network and see what sort of feedback they can provide. It also helps to check consumer sites online and see what type of comments and remarks others have made about any lender you are considering. In the best case scenario, what you will find out is that the lender has a reputation for honesty, integrity, and quick response when a client has a question or concern.
Remember that buying a home is one of the most important investments you'll ever make. Compare different California mortgage companies carefully before accepting any offer. Your hard work will pay off in terms of enjoying a great working relationship with the lender for the next twenty to thirty years.