First time home buyers face a variety of items to research to be properly educated on the mortgage process. A key component of this is mortgage rate watch. It's vital for any home buyer to attain a working knowledge of mortgage rates and how they can relate to a particular loan.
Mortgage rates fluctuate based on many factors in the marketplace. The type of loan also contributes to the type of mortgage rate available. Here are three easy ways for first time home buyers to implement a successful mortgage rate watch and end up with the right mortgage loan.
First, do your research. First time home buyer education includes reading up on mortgage rate information. Educate yourself on current rates, and find the rates on the type of mortgage loan that you think will fit your needs. Don't be worried if you don't understand everything in the beginning. During the process, you will need to....
... Trust your loan originator. Consult with a trusted and experienced loan officer and ask any questions your initial research didn't answer. An experienced mortgage lender will be able to explain the mortgage rates for each loan offering, and the pros of cons of each. This conversation will bring you closer to the right decision for your situation. The bottom line is, a good relationship with a lender is the key to a smart decision.
Finally, don't necessarily go with the lowest rate. It's essential to look at the mortgage loan in a big picture way. Don't just select the one with the lowest interest rate with no regard for other factors. Understand the terms of the loan, the length of the loan, and whether the rate is fixed or variable. Make your decision based on all of your current financial needs. Sometimes the lowest interest rate won't be the best choice for your personal situation.
Buying a home and navigating the mortgage process is a bit intimidating. The best ways to make the right decision are to participate in first time home buyer education, and find an experienced loan originator you trust. To learn more about the home buying process before meeting with a lender, download our First Time Home Buyer Education eBook now!