Helpful Tips for Arranging a Loan

Securing financing is a critical factor in achieving your goal of owning a home. Therefore, it can get pretty stressful, and is often referred to as the difficult part of buying. Be equipped, and you can get through this in no time!!! Here is a few steps to follow:

1.  Get to Know What’s in Store

There is a variety of loan programs available to you. It is extremely recommended that before you proceed with an application, you get familiar with all the different options. Understanding is key; be sure to consult a mortgage professional, or two, and get them to thoroughly explain to you the differences between the various mortgage programs available to you. You should also be aware of the advantages and disadvantages of Fixed Mortgage rates vs Variable rates. Once you are familiar with what’s in store, you are more likely to choose the right option for your current situation.

2.  Lock in the interest rate or let it float?

If you decide to lock in your interest rate, you are committing to a set interest rate throughout the term of the loan. If you decide to let your interest float, the interest rate you pay will fluctuate up or down depending on current market conditions. Historical data indicates that Variable Mortgage rates have been the best choice for consumers.

3. Shop Around

Don’t rush into anything you aren’t sure about. Take your time to study your options and decide which package suits you best. You don’t want to jump into something you not 100% sure about, and a few days later find out there could have been a better option. Different mortgage lenders specialize in different things, that is why it is important that you get a referral from someone you trust or obtain advice from a Real Estate professional who can best direct you to a well-known and an experienced broker.