Finding the Mortgage that’s Best for You

With all the talk lately of rising and lower housing mortgage rates, many would-be buyers (and especially first-time buyers) are taking a closer look at the types of mortgages available to them in addition to how current rates will impact their monthly payments.

Before you even start your home search, there are some important decisions to consider, including arranging the financing through a mortgage lender, bank or other source of funding.

If you have never borrowed to buy a house before, a good place to start is wherever you do your personal or business banking. Most banks offer home mortgages and as an existing customer you may enjoy the benefit of lower interest rates and fees not available to non‐bank customers. For those who have owned homes with mortgages in the past, contacting your previous lender could also produce similar advantages.

In recent months the mortgage industry has become more cautious in the types of loans they make and the qualifications of borrowers. As a result, it is wise to shop around and not limit yourself to a single source. For borrowers, competition among lenders is a good thing.

When you meet with lenders be prepared to ask the following questions:

• What types of loans do you have available?

• For what types of loans do I qualify?

• Can I get a federally insured or guaranteed loan from you? (These loans usually require smaller

• down payments.)

• What about special loan programs like those offered by the Federal Housing Administration

• (FHA loans) or the Department of Veterans Affairs (VA loans)? (These loans are attractive to first

• time buyers and to military veterans.)

Other factors to consider are the length of the loan, the interest rate and whether that rate will be fixed or adjusted from time to time. In addition, you should consider options on the amount of the down payment and any fees or closing costs associated with the loan type and interest rate.

If it all sounds overwhelming, don’t panic. Your agent will be able to help provide more information and recommendations based on your situation. That’s why it’s crucial to have an experienced pro in your corner. So, what are you waiting for? Contact Metrowest today and let’s discuss your options!