Shop for Mortgage Rates and Terms
There seems to be a loan program for every type of buyer. Keep in mind that the interest rate you get depends on your credit score, work history, and debt-to-income ratio. It may also depend on how much money you apply toward a down payment. A 30-year conventional loan usually requires a 20 percent down payment, but there are dozens of other loans in which you can put down much less or nothing or finance for less than 30-years.
Your lender will want you to bring in tax returns, salary stubs and other financial data. Keep in mind that the higher your credit score, the lower the interest rate. You may want to check your credit score two or three months before buying to make sure that there isn't anything on your credit report that may hinder your chances of getting a loan, such as someone else's bad credit showing up on it. A difference of even half a percentage point on the interest rate can make a huge difference in how much you pay over the life of a loan. For example, the difference in the monthly payment on a $200,000 mortgage at 8% vs. 7.5% is about $69 per month. Over 30 years, that amounts to nearly $25,000. The bottom line however, is how much you can afford monthly. Let your lender show you what that payment is with and without taxes and insurance.
If you don't already have a lender, please contact Evelyn Darland, a loan officer from Cox, Beard & Jacobson in Medford. You will find her to be knowledgable, efficient, with excellent customer service and available to help you 7 days a week. Click here to learn more about Evelyn.