HOW TO RECEIVE THE BEST INTEREST RATE FOR YOUR NEW HOME ?

Great interest rates can be hard to find, but if you are prepared and know what numbers to look for, you may get lucky. It is important to do your research before applying for new loans. Knowing how interest rates work will give you an advantage over lenders who don't understand the market.

When interest rates go up or down, it affects everything else in real estate. Lenders often offer interest rate incentives when buying a house because they want you to buy now while interest rates are low instead of waiting until interest rates rise in the future which would make houses more expensive.

Here are some helpful steps on how to get the best interest rate for your first home.

Get Pre-Qualified

Make sure you know how much interest a lender could potentially charge you for purchasing a home. This will give you an idea of what interest rates to look for. It is important to have this information before looking at houses so you can negotiate the price down if interest rates rise later on, or else the house may become unaffordable based on interest rates alone.

Get Pre-Approved

Pre-approval is a step up from pre-qualification. A lender will check your credit and tell you exactly how much interest they could charge you for a loan. Getting pre-approved not only gives you an idea of interest rates, but also tells sellers that there are buyers waiting to purchase their house. This makes it easier to negotiate the price down if interest rates suddenly go up before closing day.

Find the Right House

This is the most important step. If interest rates are low, it may be wise to choose a house that might not have as many amenities as other houses in the same price range because interest rates are expected to go up later on. The house you purchase will ultimately dictate how long interest rates stay stable. This is an extremely risky move if interest rates suddenly skyrocket before closing day, but can pay off if interest rates rise slowly after you close escrow.

Next Steps

If you're looking to find the best interest rate for your first home, click "get started" and contact us today! We'll be happy to help you get pre-approved or pre-qualified for an interest rate that fits your budget and needs.