When obtaining a home loan, you’ll receive two important documents from your lender: a loan estimate and a closing disclosure. On the surface, these documents are very similar, but they both serve different purposes. Here’s what you need to know about the differences between these two forms and what each means for you:
Getting the Best Kansas City Mortgage Rates
Kansas City mortgage rates will start to rise in the near-future and many consumers may miss out on the opportunity of a lifetime. Homebuyers, who can lock in long-term financing at today’s prices, will find their investment to be much more worthwhile. Time is running out so don’t hesitate to make your move now. Here are a few tips to help you acquire the best mortgage rate before it’s too late.
Know your situation
The expenses of homeownership can quickly add up. Even though Kansas City mortgage rates are constantly changing, buyers can use the right tools to find an affordable loan for their needs. There are three important questions that borrowers must be prepared to answer, so lenders are able to provide accurate quotes.
- How large is your down payment?
- Are you buying a single-family home or a condominium?
- Are you refinancing or purchasing?
Ultimately, these three elements can greatly influence your monthly mortgage payment. The type of property you plan to buy and the size of your down payment will impact your cost of financing.
In addition, having a good credit history can easily save you tens of thousands of dollars. Typically, borrowers with credit scores higher than 760, receive better deals. Instead of having multiple inquires on your report, share your score with your potential lenders.
Establish a standard
Buyers should already have a basic idea of what kind of loan they want and how much home they can afford. Researching ahead of time will help the consumer make a more informed decision. There are plenty of online calculators that can help you determine the most appropriate loan and interest rate that works for your budget. Once you’ve examined your options, acquire a referral from a trusted family member or friend. Contact the suggested lender to obtain your credit score and discuss your loan choices. This is an opportunity to have an expert explain any other financial issues that could be encountered.
This route is not recommended for every homebuyer. It may only be beneficial to some borrowers. Discount points are generally paid at the time of settlement. Each point is equal to one percent of your loan amount. They are used as a way to lower your Kansas City mortgage rates. These points are normally recommended for people who plan to stay in their home for more than 10 years. If you have to move in a few years, purchasing discount points could cost more than it’s worth in the long-run.
Ask about fees
The lowest Kansas City mortgage rates may not be the proper choice for homebuyers. Although a company may advertise the cheapest rates, there can be many hidden costs. It’s vital to understand the expenses associated with each rate, so that you choose the right loan product for you. Make sure to ask each lender the following questions.
- How much do you charge for origination?
- How much do discount and origination points cost?
- What fees are included in your quote?
- What is the annual percentage rate?
Finally, when shopping for a loan, it is essential to remember to call lending companies within the same timeframe. The market can change dramatically at any moment. In order to create a precise comparison, they should all be contacted on the same day around the same time.
If you would like more information about Kansas City mortgage rates, contact Cornerstone Mortgage, Inc. today at: 816-525-9910. Their experienced mortgage professionals will make you feel comfortable with the home buying process.The above information is for educational purposes only. All information, loan programs and interest rates are subject to change without notice. All loans subject to underwriter approval. Terms and conditions apply. Always consult an accountant or tax advisor for full eligibility requirements on tax deduction.