The increase of lenders and loan features on the market means that clients now have many options to choose from. That’s great news for homebuyers. As competition increases, interest rates become friendlier. Deciding which loan is perfect for you, however, as difficult as ever, particularly for first-time applicants. Here are three important questions that can help you make an informed decision:
What are your specific needs?
Before you make a final decision, Bonneville Multifamily Capital reminds that it pays to know what loan features are ideal for your preferences. Are you looking to build multi-family rental units, then you are better off taking a Freddie Mac multifamily loan that’s suited for this specific purpose. Of course, you also want to think about whether you’re comfortable with a fixed or a variable rate, as well as whether you may have the need or a repayment holiday in the future.
What’s on the inside?
Don’t let an interest rate that seems awesome fool you. At the end of the day, interest rates are designed to entice clients. It’s what on the inside that matters, so look at all terms carefully. Are there other fees that are attached to the mortgage? Take a particular interest in the mortgage comparison rate as this gives the overall figure you need to pay, not just isolated aspects.
Do you need help?
If you can’t make up your mind, don’t hesitate to ask for help. There are dozens of mortgage brokers around with a vast experience in dealing with mortgages. If you can explain to them what your needs are, they should be able to find the perfect loan for you. They can also help you get preapproved for a loan quickly, as they know the insider secrets of the trade.
While lenders have taken quick actions to meet the specific needs of modern homebuyers, it’s still your responsibility to know as much about mortgages.