Everywhere you look, you see advertisements about low interest rates. A potential homebuyer, who is considering the purchase of a home, may feel the need to jump in and apply at one of these low interest rate offers as advertised.
Interest rates are low, and it is a good time to buy, but you still need to do your homework. Shop around, explore all your options, finding the lowest interest rate may take awhile, but it will save you money in the long run.
Shopping for the lowest interest rates when buying a home, should take as long, if not longer, as shopping for a new car. You wouldn’t go into a car dealership and pick a $39,000 super cab pick-up, if you were looking for an economy car for $10,000. And you wouldn’t give the dealerships MSRP sticker price.
Shop interest rates and fees from many lenders. Don’t limit your search to local financial institutions. Although we all like to keep our money at home, the investment you are making in buying a new house, is probably the largest investment decision you will make in your life. And, this decision will have one of the biggest impacts on your current lifestyle.
Check out local and surrounding area newspapers in and around your area. If you see an interesting ad on TV, jot down the number and give them call. Surf the Internet, and scour every ad that offers low interest rates. Most online lending institutions offer links, that allow you to enter the purchase amount of a home, and with their interest rate calculator, you can find out approximately how much your monthly payments will run.
As expected, at a car dealership, so should it be at a lending institution. You don’t have to take the interest rate that is offered. If you have a figure in mind, or have seen the interest rate offer lower from an ad at this particular lender, put it on the table. Ask the lender what you can do in order to receive that lower interest rate. The problem may be a little glitch on your credit report, which a simple phone call can take care of.
Shopping interest rates for home buying can be time consuming and frustrating. Take your time, read the small print, and find what is suitable for you and your family’s future.