How to Compare Between Multiple Home Loans

It can be said that the United States is in a good time for you to buy that new or used house that becomes your home. Although prices have continued to drop since the end of last year, this does not mean that you will get the best mortgage loan available.

If you understand that the easy way can be expensive, we explain the most relevant factors when comparing mortgages.

Article content

1. Importance of comparing mortgage loans
2. Tips to compare mortgages in the United States
3. Consider the different types of mortgages
4. Locate personalized rate mortgages
5. Research the most suitable options
6. Evaluate options from lesser known entities
7. Use the CFPB loan estimate

Importance of comparing mortgage loans

The problem is not the lack of offers to obtain a home, but find the most suitable mortgage with your financial situation.

As daunting as you may consider paperwork, you have many resources at your disposal to do detailed research to make an intelligent decision.

Fixed mortgage

• Interest: From 3%
• Deadline: 30 years

More infoRequestVariable rate mortgage

• Interest: LIBOR + spread
• Deadline: 30 years

More infoRequestFixed mortgage

• Interest: 3.13
• Deadline: 30 years

More infoRequestVariable or adjustable mortgage

• Interest: LIBOR + 2.25%
• Deadline: 30 years

More infoRequestFixed rate mortgage

• Interest: Consult
• Deadline: 30 years

More infoRequest

Remember that this is a commitment of years, so it is well worth saving a few good dollars in the process. In a market with APRs of 4.22% for a 5/1 ARM, 3.43% for a 15-year fixed mortgage, and 3.83% for a 30-year fixed loan, you have a lot to choose from.

This reality makes a thorough comparison much more sensible to get the most attractive deal.

Tips to compare mortgages in the United States

According to a US News survey (July 2018), people who want to buy a house are aware of how to go through the process.

The data says that 30% of those consulted investigated more than 5 hours, just over half (54%) obtained at least 2 quotes, 70% are preparing for this financial commitment, 65% compared closing costs and APRS , and 37% compared all types of mortgages available.

Although it is a representative sample, it reveals the trends among those who want to buy a house or apartment. This brings us to our top tips:

Consider the different types of mortgages

In the so-called land of opportunity, you have 2 options to get a mortgage loan: conventional and governmental. The differences between the two are in the requirements demanded by the entities that offer these products.

In the branch of government, you have several programs:

• USDA loans. They belong to the Department of Agriculture for the acquisition in certain rural areas. They ask you for a minimum of 3.5% down payment and an annuity of 0.5% for the unpaid balance.
• VA credits. Sponsored by the Department of Veterans Affairs, they are for active duty, retired military personnel and their surviving spouses. They have a 0% down payment and the rates vary according to the advance you give.
• FHA program. Known as Federal Housing AdministrationIt works as a guarantee for buyers rather than a mortgage. It has more flexible requirements regarding score credit and a down payment from 3.5%. Of course, you must pay an advance of 1.75% of the mortgage and at least 11 years of insurance.

Locate personalized rate mortgages

Some search engines offer the opportunity to find products with greater segmentation. You simply have to enter your ZIP code, choose the type of financing you want and answer some questions about your financial situation.

These personalized quotes do not affect your credit score, you can obtain new ones by updating your data and we suggest you try various scenarios to better contrast the options.

Research the most suitable options

In the "shop around”Of mortgages, a good comparison job cannot be based on 1 or 2 lenders alone. It is essential that you analyze a reasonable number of offers, up to a maximum of 10.

You should include banks, credit unions, mortgage companies, savings and loans, online businesses, and mutual institutions for this purpose. As long as you gather accurate information, you can rely on the Business Blog comparator for the most popular.

Evaluate options from lesser known entities

While conventional mortgages have fewer limitations than government mortgages, there are also many lenders that offer them. In addition to the alternatives of online companies and recognized banks, you can include other options with a lower profile.

If you are looking for "community bank mortgage","credit union mortgage"Or"S&L mortgage”, You might be surprised to find better conditions for ARMs or fixed mortgages for different kinds of budgets.

Use the CFPB loan estimate

Once you have the list of candidate mortgages, you should ask each lender for a mortgage credit estimate. It is a standard document prepared by the Office for Consumer Financial Protection.

This process does not take points away from score as long as it is within a period of 45 days and is for the same product.

You must provide personal information to review your history, we recommend that you request them all on the same day and review in detail the first page of the report, which talks about the amount of closing you need.

If you are really interested in saving and getting the mortgage loan that fits your personal finances, you need to investigate thoroughly and support you in resources such as our Business Blog comparator.