What you need to know about mortgage rates in 2019

What you need to know about mortgage rates in 2019
 OMG Ellie 1/2/2019 8:57 AM

Buying a home can be intimidating for anyone! There are so many steps you have to take before you buy a home.  One of the most important steps to home buying is to get a mortgage loan rate that fits into your budget and your needs. In order to do this, you need to know how and where to look. This will allow you to research your options and choose the best one for you.

How to get a mortgage loan

When it comes to finding a mortgage, everything is dependent on your credit score. The best way to find out how to increase your credit score quickly is by fixing errors on your credit reports, stay below your credit limit and deal with past-due bills.

Another way to ensure that you are setting yourself up for success during your house hunting process is by asking yourself: “What can I afford?” Get started by assessing your debt, how much money can you put down for the down payment and how you will pay closing costs.

From there, you’ll want to get pre-approved for a mortgage. The goal here is to see what the lender is willing to let you borrow.

Next, you’ll need to choose a type of mortgage. This means doing your research on where and who you should be borrowing from. You’ll want to pay attention to words like fixed or adjustable rate and annual percentage rate. Remember, know what you can afford.

Where to get a mortgage

The most popular forms of home loans are from a bank, credit union, mortgage broker and online lender. These mortgage loan types offer a variety of options to choose from with pros and cons that every home buyer needs to weigh.

Here is a list of pros and cons for each mortgage loan type.

Bank

Pros:

  • Established relationship if you are using your bank.
  • Sometimes can offer a better rate, especially if they are trying to fill out a portfolio.
  • Easier to link accounts for automatic payments.
  • Local point of contact.

Cons:

  • Limited loan programs

Credit union

Pros:

  • Lower overhead
  • Lower rates or fees

Cons:

  • Limited loan programs
  • Payment of membership fee

Mortgage broker

Pros:

  • Great for freelance income or poor credit

Cons:

  • Fees for going through a middle man
  • No guarantee for a good rate

Online lender

Pros:

  • Flexible application based on schedule
  • Close loan quicker than others

Cons:

  • Little human interaction
  • Tough to ask questions
  • No long-term relationship is built

As a home buyer, take time to explore and consider all of your options. It’s important to remember that the right fit for you might not be the right fit for someone else.

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The Fairfield Team is dedicated to providing our homebuyers with the best homes that Omaha has to offer. If you are looking to relocate or buy a new home in the Omaha, contact the Fairfield Team!