In reality, people and loans won’t meet your ideal specifications. Otherwise, we’d just call it “free love” and “free money.” However, that doesn’t mean that people and loans aren’t worth the investment.
Here are some redeeming qualities that loans can have:
- A low interest rate
- No prepayment penalty, meaning you won’t be faulted if you refinance, sell your house, or pay back your loan earlier than expected
- A cap for how much your interest rate can increase if you have an adjustable rate mortgage (ARM)
At the same time, every person has different needs. Therefore, make sure that your loan is an asset for you and can help you cover all the costs associated with homeownership.
Homeownership costs include:
- A small down-payment (as low as 3%)
- Private mortgage insurance (PMI)
- Closing costs, mortgage points, origination fees and other transaction fees
- An earnest money, escrow deposit, or good faith deposit (they all mean the same thing)
- Home inspection and appraisal cost
- Title insurance cost
- Maintenance and repair costs
This should give you an idea of what to look for in your mortgage. The best way to see if you have a good offer, however, is to explore different options.
Comparing offers from different lenders can be accomplished one of two ways:
- Go to multiple different lenders in person, and ask for their terms, or
- Work with us and compare rates from multiple different lenders through one convenient platform
Whichever way you choose to compare rates, don’t forget to read the fine print and don’t be afraid to negotiate! Not all loans are created equal and you’ll need to pay attention to the details to get yourself the best mortgage possible.
While no loan will meet all the criteria listed above (thus the word “ideal”), as long as yours meets your financial needs, you and your loan will be a match made in heaven.