Looking for the Best Mortgage in Pennsylvania?
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OBTAIN INFORMATION FROM SEVERAL LENDERS
Home loans are available from several types of Pennsylvania lenders including commercial banks, mortgage companies, and credit unions. Different lenders offer different terms and prices, so you should contact several lenders to make sure that you're getting the best price. You can also obtain a home loan through a Pennsylvania mortgage broker. Brokers arrange financing instead of lending money; they find a lender for you. A Pennsylvania mortgage broker's contacts with numerous lenders translate into a larger selection of loan programs and terms for you. A reputable PA mortgage broker will contact several lenders regarding your mortgage loan application in order to find you the best mortgage loan program.
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OBTAIN ALL IMPORTANT COST INFORMATION
When purchasing a Pennsylvania home, know how much of a down payment you can afford, and find out all the costs involved in the loan. Knowing just the amount of the monthly payment or the mortgage interest rate is not enough.
- Ask each PA lender or mortgage broker for a list of average mortgage interest rates. Although rates can differ significantly depending on the mortgage loan amount, borrower's credit history, and other circumstances, knowing the average rates in Pennsylvania is a great place to start. If you are given a rate that is higher than average, ask your mortgage loan representative about the cause of the mortgage rate increase.
- Ask your Pennsylvania lender or mortgage broker whether the rate is fixed or adjustable. Keep in mind that when interest rates for adjustable-rate loans go up, so does your monthly mortgage payment.
- If the interest rate is quoted for an Adjustable Rate Mortgage, ask how your rate and mortgage loan payments will change if rates increase and decrease.
- Ask about the PA mortgage loan's annual percentage rate (APR). The APR includes the interest rate and other charges that are involved in the mortgage loan.
- Loan Points
Points are fees which are paid to the lender or mortgage broker for the loan and are often reflect the mortgage interest rate; usually the more points you pay the lower interest rate you will acquire. Ask your lender or broker to quote points as a dollar amount so that you will know exactly how much you have to pay for your loan.
- Fees
A home loan often involves many fees, such as loan origination or underwriting fees, broker fees, and closing costs. Every Pennsylvania mortgage lender or broker should be able to give you an estimate of their fees. In most cases you can borrow the money to pay these fees, but this will increase your loan amount and total costs. No closing cost mortgage loans are available, but they usually lead to higher mortgage rates.
CREDIT PROBLEMS?
Don't assume that slight credit problems resulting from unique circumstances, such as illness or temporary loss of income, will limit your PA mortgage loan choices to only sub prime Pennsylvania lenders.
If your credit report contains some blemishes, but there are good reasons for trusting you to repay the mortgage loan, explain your circumstances to the Pennsylvania mortgage broker or lender. If your credit problems can't be explained, you will most likely have to pay more than borrowers with good credit. Ask your PA mortgage broker how credit affects your rate and what you would need to do in order to receive a lower interest rate.
