A recent survey suggests that there are many facts of the home buying process that continue to elude future home buyers. Below are some of the outcomes of the findings, along with a list of five things that home buyers do not understand and should try it out:
1) Mortgage Rates Change Daily-
In a volatile mortgage market, current mortgage rates can change multiple times during the day.Almost 55 percent of prospective home buyers don't recognize that.To get the best rates, you have to monitor them and shop around. To lock each day's mortgage rates, then be sure to commit with your lender before current rates begin to move.
2) Lender's Fees are More Flexible-
You need to pay lender fees when you put in an application for a mortgage, and that is regardless of what sort of home you choose. Nearly 34 percent of prospective home buyers don't understand that fees vary from one lender to the next. All the more reason to shop around for mortgage rates that are different from various lenders.
3) FHA Loans Are Offered to Buyers-
Mostly home buyers think that only first-time buyers can qualify for an FHA loan, a mortgage insured by the Federal House Administration. Actually, these loans are offered to any buyers who satisfy eligibility requirements. Along by getting few advantages like minimal down payments, slacked credit score requirements, low prices, and interest rates that are much more appealing.
Merely if you have been "pre-approved" for a loan does not mean you've secured financing, yet 37 percent of prospective home buyers think it does. When a lender pre-approves you, they only approximate how much you really can afford. It's not until a lender has approved your loan application without conditions that you have got a firm dedication.
5) Interest rates on ARM(Adjustable Rate Mortgage) Aren't Consistent-
While interest rates on ARM's do usually improve after 5 years, rates could fall as mortgage loan with the interest rate periodically adjust based on an index which reflects the cost to the lender of borrowing on the credit markets.Be sure to keep this and everything in mind when you're looking for a loan.