Tips for Getting Home Loans from the Right Lenders

Getting home loans is possibly the biggest step in an adult's life. It's up there with having kids, landing that big job, starting your own business. Actually, the whole point of those big three landmarks is so you can be able to afford your piece of the American Dream.

But you don't want that dream to turn into a nightmare. Ask around. For many people, buying a house can turn into one of worst mistakes in their life. It's not because their home was a bad idea. More than likely, they signed up for a faulty mortgage. To avoid making the same mistake, follow these steps to signing the right mortgage for you.

First off, home loans come in fixed rates or variable rates. A fixed rate mortgage makes perfect sense at a time such as right now, when the interest rates are so dramatically low. You can buy a house that's worth much more than you could normally afford. However, just because your lender says it's a fixed rate mortgage, don't take him on his word. Be sure to get that rate, and the fixed status, on paper.

The benefit of a rate lock can be explained further by describing exactly how the investment works. First, in a locked interest rate, the lender guarantees a loan at that rate for exchange for payments and fees handed over by the buyer at certain points. The buyer and the lender work their best to close the house before the specified date. Otherwise, the mortgage expires without going into effect.

These locks usually last for one to two months. You'll typically have to pay more for a longer lasting lock. That makes sense, considering that the lock is like taking out insurance on the low rate that you want. Even if the interest rates go up in that month or two, the lock ensures you will have your agreed upon, lower rate. The lender looks at it as insurance, too, that you will borrow the money that you agreed to.

Of course, the trickiest part of these home loans is deciding when to lock. The decision, part intuitive guesswork and part research, comes down to weighing when you will need to pay the lock, how long your mortgage will be, and your "guestimate" of where rates are going.

Mike Long is the successful web publisher of Home-Loan-SuperGuide.com providing valuable tips, advice, and info about a multitude of relevant topics including home loans.

---

Non-conforming Home Loans vs Conforming Loans

The simple definition of a "non-conforming home loan" is: You... Read More

What to Really Expect for Closing Costs

Closing on a property is a very challenging time for... Read More

New York Refinance - Refinancing in New York

If you are looking to refinance in New York, it... Read More

Advantages and Disadvantages Of A Reverse Mortgage

Betty and John, are in their mid-seventies and are currently... Read More

Consolidate Debt With A Home Equity Loan

If you are a home owner who is having to... Read More

Home Improvements Turn Average Homes into Dreams Come True

If you're thinking about taking out a home improvement loan,... Read More

First Time Buyers Fail To Shop Around

Almost two thirds of first time buyers accept the first... Read More

Home Equity Loan ? Not Just For Home Repairs, And Tax Deductible, Too!

Thanks to the combination of low interest rates and skyrocketing... Read More

Choosing The Right Mortgage For You

This article will help you understand the differences between a... Read More

Mortgage Soup

Looking for home mortgage loans can get confusing with the... Read More

The Best Tactics for Getting a Quick Homeowner Loan

Trying to find a quick homeowner loan can seem difficult... Read More

FHA Mortgage: Whats the Best Way to Show an Underwriter that Youre Ready to Buy a House?

Mortgage underwriters can be a suspicious bunch. If you have... Read More

Save Yourself from Homebuying Disasters

Whether you are a first time home buyer or a... Read More

Should You Get a Home Inspection?

It's very important, and in my opinion, mandatory to have... Read More

Obtaining a Home Equity Loan Online

Private lenders, banks, and mortgage companies are all setting up... Read More

Real Estate Lender - Get Approved For a Mortgage Loan Online

Real estate lenders now offer mortgage loan quotes and application... Read More

Home Equity Loans ? There?s Gold In That There House

To paraphrase an old familiar quote that goes "there's gold... Read More

Who Else is Ready to have Their Money Work Harder for Them?

What does it mean to refinance? Why would anyone want... Read More

Refinance Your Second Mortgage

A 2nd mortgage is a secured loan on your property,... Read More

What is a Commercial Mortgage?

A commercial mortgage is a loan that uses commercial property... Read More

Home Equity Loan Information - How to Use One Wisely

Using a home equity loan to get out of debt... Read More

Poor Credit? Get a Sub-Prime Mortgage Now, and Refinance to a Conventional Mortgage Later

There are great mortgage loans for people with poor credit,... Read More

Mortgage Advice

In the US today more households have mortgages than ever... Read More

Choosing a Mortgage Lender

Just as there are many types of mortgages and mortgage... Read More

Which is Better? Fixed-Rate or Adjustable-Rate Mortgages

The answer depends on several factors including your financial situation.... Read More

Need Mortgage? Alternative Finance Often Masks Predators, Who Want to Steal Your House

So, your bank had just turned you down for a... Read More

Home Mortgage Loans For People With Bad Credit

Getting a home loan with bad credit has actually never... Read More

What Are Home Equity Loans?

A home equity loan is simply borrowing on the difference... Read More

Kippers or Red Herrings?

Recent news has made much of parents stretching their finances... Read More

Home Loans ? Would You Buy a Home Without an Inspection?

The housing market has exploded, with home prices rising beyond... Read More

Why Refinance Back into a 30-Year Loan?

One of the biggest reasons homeowners refinance their mortgage is... Read More

Making Sense of Mortgage Speak

Applying for a home loan can be overwhelming. You will... Read More

How to Find Cheap Home Improvement Loans

If you have home improvements that you'd like to see... Read More