Buying a home is the single largest purchase that most individuals or couples will make in their life. Having the right home lender can make finding funding for the home of your dreams a simple process.
It is always important to compare the rates offered by different lenders in Helena, MT. Different lenders will offer a variety of home loans as well as different rates. With the large purchase of a price, even a small difference in a fraction of a percentage point on a home loan can add up to thousands of dollars in interest over the life of the mortgage. Local credit unions often provide better rates than the national banks, plus there is the added advantage of working with someone in your community for the loan.
To get the best rate on home loans, consider the following tips and strategies. A top home lender will also provide information that is very helpful in improving the rate you will be quoted for the loan.
Boost Your Credit Score
The interest rate and approval for home loans are going to be based, to a significant amount, on the credit score of the borrower. Take the time a few months before you plan to start looking for a home to pull your credit reports, check all negative issues in the reports and dispute any errors.
In addition, pay off credit cards and make sure to keep current on any other notes or loans. Be sure to make full payment and don’t skip any payments.
Check for Special Programs
If you have a credit score below the 620 that is required for most conventional home loans, consider an FHA loan. This also allows you to make a down payment of 3.5% instead of the customary 10 to 20%.
VA loans for veterans and active duty military offers highly competitive rates with zero down payment required. This is an ideal choice for many, but there is the requirement to meet the VA application criteria.
Talk to more than one lender in Helena, MT before choosing the financial institution you want to work with. This will be a long-term partnership, so make sure you are comfortable in working with a lender before taking out the mortgage.
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