Finding the ideal rate and terms is a critical step in the homebuying process. A reliable lender or bank will not only simplify your loan application, but can save you thousands of dollars over its lifecycle.
Finding a great deal on your new mortgage should be your top priority, and the best way to start is by comparison-shopping online. Additionally, speaking to friends and family who recently bought or refinanced their homes can be beneficial as well.
Finding the ideal rate requires comparison between several lenders and asking them for a loan estimate. This document will include all pertinent details, such as rate and loan terms, plus any associated fees or costs.
Lenders often use an interactive mortgage calculator to provide you with a loan estimate, so it’s wise to shop around for the best rate before signing on the dotted line.
A loan estimate should include a direct interest rate quote, the corresponding annual percentage rate (APR), as well as other relevant information like loan amount, interest rate and length. The APR is especially useful when comparing rates among lenders since it takes into account any fees or costs imposed by each lender.
Importantly, the APR and any associated details should be clearly listed in your loan estimate so you can compare similar loans side by side.