CAUTION- The Dangers of Rate Shopping

Buying a home will probably be the largest purchase you ever make.  With that in mind, you want the lowest interest rate, right?  WRONG!  The lowest advertised interest rate may not be your best option.  Some lenders and mortgage brokers advertise low rates, but don’t inform you of all the additional points and fees that come with the mortgage.  Here are a few tips to take into consideration to avoid misconceptions of an advertised low interest rate.

  1. Look at Points and Fees– Always ask about points, lender fees, broker fees and settlement costs. Points are pre-paid interest that affect the quoted interest rate.  You can ask to have your points quoted as a dollar amount instead of just a percentage.  For example, on a $200,000 loan, one point would equal $2,000.

 

  1. Shop Smart– Interest rates fluctuate daily. Talk to your Loan Officer about when the best time to lock is.  First Home Mortgage values honesty and service, so any questions you may have for your Loan Officer will be answered diligently, fairly and in regards to your best interest. If you contact different lenders, make sure you provide each lender with the same information.  Such information will include: the quality of your credit, location, type and use of your property, the size of down payment and/or the amount of home equity you have.

 

  1. Finding the Best Lender– Customer service may be the most important consideration when shopping for home financing. During the loan process, you should feel comfortable disclosing your financial information and asking questions. A trustworthy lender will be responsive and will assess your situation carefully to best suit your home buying needs. Make sure to choose a lender who can offer personalized options and takes the time to understand your goals.  Just remember, if you don’t close, interest rates don’t matter.

 

If you have any questions or would like to get started on this home-buying journey, contact First Home Mortgage Corporation today!  We provide the mortgage you need to make “home” happen by delivering customer service that not only fulfills goals, but exceeds expectations.

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ALERT- DC Open Doors Closing Cost Grant Special

DC Housing Finance Agency is offering a DC Open Doors Closing Cost Grant Special in the amount of $1,500.  This can only be used towards the borrower’s closing costs and the loan must be closing between June 9, 2017 and September 1, 2017.

Eligibility

  • Borrower must purchase a home in the District of Columbia
  • The borrower’s income must be at 80% or less of the Area Median Income ($88,240)
  • Grant is only available on a loan reserved/locked as a DC Open Doors HFA Preferred loan product (Fannie Mae loan with or without Down Payment Assistance)
  • DCHFA will provide a Grant Disclosure for the borrower to sign

Contact a First Home Mortgage Loan Officer today to see if you qualify.

 

This is not a guarantee to extend consumer credit as defined by Section 1026.2 of Regulation Z.  Programs, interest rates, terms and fees are subject to change without notice.  All loans are subject to credit approval and property appraisal.  First Home Mortgage Corporation NMLS ID #71603 (www.nmlsconsumeraccess.org).

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