There’s not much question about it; today’s real estate market is a seller’s market. It’s a simple matter of supply and demand. Econ 101 students all learn about supply and demand, and one nearly unwavering aspect of supply and demand is that when supply drops and demand for the remaining goods and/or services remains constant, […]
Shopping for the Best Missouri Mortgage Rates
Both potential and current homeowners are searching for the best Missouri mortgage rates on the market. When choosing any kind of loan or rate type, it’s crucial to know your options, understand your goals and listen to your instincts. Borrowers need to evaluate all elements thoroughly in order to make a wise choice. It’s common to think that shopping for Missouri mortgage rates should be relatively simple. In actuality, the process can be rather challenging.
Don’t be fooled by low rates
Seizing the lowest advertised interest rate is a huge mistake made by many borrowers. Some lenders manipulate numbers to produce a rate that looks better than it really is. It’s vital to know what other expenses are included within that figure. Focusing on the interest rate alone may cause you to overlook significant pricing factors. Furthermore, beware of Missouri mortgage rates that are advertised on television. They sometimes require the borrower to pay discount points.
Obtain important cost information
Fees are one of the leading elements of home financing. Lenders will sometimes charge extra costs, increasing the loan amount, while offering a desirable rate. Loan prices vary depending on the type of program and the consumer’s financial situation. The annual percentage rate or APR will allow the borrower to realize the total cost of a mortgage. This will give them a bottom-line number that can be used to easily compare interest rates. Expenses to be aware of include:
- Discount points.
- Origination fees.
- Property taxes.
- Mortgage insurance.
- Homeowner’s insurance.
- Closing costs.
- Appraisals and inspections.
- Approval and processing.
- Title charges.
Comparing apples to apples
Ask three or four reputable lenders for quotes and compare their offers. Contact the lending firms within hours of each other to receive comparable quotes. Lenders will need you to provide:
- How much you plan to borrow.
- The amount of your down payment.
- The financing program you desire.
- Your target date for closing.
- Basic credit information.
Buying discount points can make sense for certain consumers. Points can lower your monthly payment but will cost a pretty penny. The greatest advice is to look for rates with no points when you are shopping around for the first time. This is your greatest opportunity to efficiently and effectively compare information. It’s essential to provide your lender with the details that can affect their evaluation of your financial situation.
Below are a few tips to prevent you from comparing apples to oranges:
- Never compare different loan types when looking for the best rate.
- Use the APR to help you more accurately compare pricing from multiple companies.
- Ask lenders about their rates for your particular closing timeframe.
Lastly, keep in mind that many other aspects will be considered when you ask for a quote. These include the loan amount, your credit score, the location of the property, your current assets and if the home will be your primary residence.
Want to learn more about Missouri mortgage rates? Get started today by completing the secure online application. A trustworthy Cornerstone professional will guide you through the home loan process while providing you with personalized customer service.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.