Choosing Your Home Loan

Buying a house is super stressful for a million reasons, and one of the biggest ones is choosing your home loan company.  Your home loan will determine your monthly payment for the next 15-30 years, so it is obviously a pretty important piece to the home buying puzzle.

Plan Your Attack

You will need some basic information about yourself to receive home loan quotes.  The most common questions like if you have a job are going to be easy to answer, but you may not know all of your details off of the top of your head.  Try getting together your job history info, income info, and any of the same stuff you will need for a co-owner before even starting the search.  Also remember to keep in mind other details they will want to know, like if you have another mortgage already, and make a note to ask for any discounts for which you would qualify that could lower your loan interest rate.

Choose Your Weapon

Are you better with people or do you like to do a bunch online?  When you are contacting companies for quotes, keep in mind there are several methods.  If you like the phone, you can call directly and repeat the same information to several people to receive quotes that you can compare later.  If you rather not deal with phone calls, you can get a ton of quotes online.  There are even websites no matter what country you live in that will get you multiple home loan quotes to compare at the same time.

No matter how you search, just remember to get multiple quotes for the same thing from multiple companies so that you aren’t limiting your options.  Spending that time now can save you a bunch of money every year.

After You’ve Chosen

If you are about to buy a house and know which home loan company works best for you, make sure you are officially approved before getting too attached to the exact home you want to buy.  It is usually a quick process but it may be frustrating since they may come back several times with requests for more info.

If you already own your home, remember to keep an eye on home loan rates every year or so.  If they fall a bunch, you could possibly refinance and save a bunch on interest.  Only you can protect yourself from bad deals by shopping around.  Good luck!

6 thoughts on “Choosing Your Home Loan”

    • Very true, there are so many places to check these days. It’s all about knowing what resources are legit and will be the best to work with.

      • I’ve also heard good things about Quicken Loans. From my post about my experience using the HARP refinance program, a few people have either replied or contacted me gushing about the experience they had. They also seem to have very low rates based on their radio spots and knowing what others are charging down here.

  1. The last time I refinanced, I looked up the prevailing rate online. and called my bank. I think you want to know what is the prevailing rates so you can know if your quote is reasonable. I usually will negotiate rate and terms because I can always go somewhere else. One of the n=benefits of having a goo FICO score!

  2. This is really helpful. Choosing the right home is really hard to make sure the quality of the house and of course is it really worth buying. By the way thanks a lot for sharing this to us.

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