Get the Best Home Loan
How to get the mortgage
- Take the time and make the effort to become educated about the different types of home loans and the advantages and drawbacks of each.
- There are loans with different down payment and underwriting requirements, mortgages with fixed and adjustable interest rates, and loans with features like interest-only payments or prepayment penalties.
- Once you know what you need — for example, a $190,000 mortgage for a $200,000 purchase with the lowest possible payment — you can shop around and compare rates, terms and costs from different lenders.
How to gather mortgage quotes
Studies have shown that consumers who obtain several quotes from competing mortgage lenders get better deals on their home loans and save thousands. Whether you contact lenders in person, by telephone, or online, get at least four quotes in writing and compare them to get a competitive deal. It’s important that you obtain your quotes as simultaneously as possible, because rates change continuously, often several times a day.
The interest rate, annual percentage rate (APR), costs and loan features should be prominently displayed in writing on your quotes. No lender is obligated to honor a quote, however, unless it puts it on a Good Faith Estimate, or GFE – a worksheet or scenario does not carry the same consumer protection. Once you actually apply for a loan, the lender must issue a GFE within three business days.