Loan Process > Step Three: Shop Loan Programs & Rates

 

 

Before shopping for loan programs and rates, you may want to consider a few things:

 

.        Think about how long you plan to keep the loan. If you plan to sell the house in a few years you may want to consider an adjustable or balloon loan. On the other hand, if you plan to keep the house for a longer time, you may want to look at fixed loans.

.        Understand the relationship between rates and points. Points are considered to be prepaid interest and are tax deductible. Each point is equal to one percent of the loan. So the more points you pay, the lower the rate you can get.

.        Compare different loan programs. Shopping for a loan can be difficult. With so many loan programs to choose from, each of which has different rates, points and fees, it¡¦s hard to figure out which program is best for you. That's where an experienced loan officer can help you make a decision that¡¦s best for you.

 

Step 4: Apply for loan