Check the Banks in Your Area

There are a variety of banks that we can check out for different services. 

We should always take into consideration the location of the bank and what it has to offer in terms of pricing, services, and more. For example, if you are looking for a bank that is close to your home or office, then you should consider a local bank. You can also make sure that there is an ATM near your destination so that you don’t have to drive back and forth while running errands. 

Also make sure to consider the range of financial products available from each bank such as checking accounts, savings accounts, loans, credit cards, insurance among other things. 

Get a Pre-Qualification Letter

A pre-qualification letter is an informal letter from a company, usually from your bank of choice, which states that it is highly likely that the company will be able to repay its loan. 

A letter of pre-qualification (LOPQ) is a document which attests to the financial stability of a potential borrower. It’s also known as an “open bank guarantee statement”. 

The LOPQ is written by the potential borrower’s bank (or other creditor) and typically issued in response to a request from a lending institution or an intermediary for third party funding. The LOPQ may represent up to 100% of the potential borrower’s outstanding debt. 

Shop Around for Current Interest Rates

The current interest rates on loans and mortgages are still at exceptionally low levels. However, this is likely to change soon when the Federal Reserve raises the federal fund rate. 

As of August 2021, the federal funds rate currently at a target range of 0%-0.25%. Shop around for current fixed interest rates and don’t consider any future adjustable-rate loan programs. Those adjustable-rate mortgages are nightmares waiting to happen. 

Secure a Down Payment and Closing Costs from Family or Friends

When you are considering the option of purchasing your first home, one of the major considerations is how to cover the down payment and closing costs. You can either do so with a loan from a bank or by getting family or friends to help you out. A recent study showed that more than 50% of home buyers used money from their family for a down payment and closing costs on their property. This is because many potential homebuyers don’t have enough savings to cover the cost of a down payment or to cover the cost of buying a house. 

Negotiate Your Own Home Loan Rate and Terms

Before you start looking for a home loan, it’s important to know what your credit score is. This will give you an idea of what rates and terms you are qualified for.  

 Housing prices can vary depending on where you live, so it’s also important to know the average price of homes in the area that might interest you.  

 The best place to get pre-approved for a home mortgage is with a bank or credit union that’s close to home and work. That way, if you find something during your search that’s right for you, they will be able to provide all the information needed quickly and easily.  

 Although it may take some time, it may be worth meeting with several lenders before deciding on one to go with. This way you can avoid the possibility of being offered a higher rate than initially expected. The best way to decide is to find out what they offer and then decide who you want to work with.  

Here’s a pro tip:

A mortgage broker can save you time and money if you are looking to buy a home. They can help you find the right mortgage program for your situation, whether you’re a first-time homebuyer or looking to refinance your existing home loan. Additionally, mortgage brokers often offer down payment assistance which can help if you don’t have the required 20% deposit saved up.  

  

That’s it. It’s a little work, but finding the right mortgage is worth it. We wish you the best of luck.