guide shopping new home loan

First Time Home Buyer

The Ultimate Guide to Shopping for New Home Loans

When you buy a house that was built years beforehand, you never know what you’re getting into. There could be underlying repairs to contend with, neglected maintenance tasks, and appliances of questionable quality taking up space in the home. Buying a new home is the best way to avoid many of those issues, but before you can get into the house of your dreams, you need to find a good loan. Here’s what you need to know to find the best new home loans for your needs.

Get Your Credit in Order

Before you can apply for new home loans, you need to check your credit score. The higher it is, the better the loan terms will be. If it’s on the low side (below 680), try to increase it before you apply. Pay down your existing credit cards and debts. Avoid taking out new loans and stay current on your bills. This will give your score a boost so you’ll look more attractive to lenders.

Decide How Long You’ll Stay in the House

There are two main types of new home loans available: fixed interest rate and adjustable interest rate. Fixed interest rates have slightly higher interest rates but those rates will never change for the duration of the loan. This makes them ideal for buyers who plan to stay put for years to come. Adjustable-rate loans have interest rates that change over the years. They typically start out with ultra-low rates, so if you’re going to sell in a year or two, these loans may save you money.

Get Your Down Payment in Order

It’s always easier to qualify for new home loans when you have a down payment saved up. Ideally, try to have at least 20 percent of your home’s purchase price ready to secure the loan. If you don’t have that much, try to save as much money as you can before you apply. You can also look into first-time homebuyers programs to help you increase your down payment amount.

Get Several Quotes

Finding the best new home loans means shopping around with lenders. Apply for quotes from at least three lenders and compare the terms they offer you. You’ll want to choose the lender that qualifies you for the highest loan amount at the best interest rate.

Apply Today

Finding the best new home loans can be tough, but it doesn’t have to be. Contact our team to discuss your options or apply online today.