Moe Mojahed
Designated Broker
Arizona Home Source Realty LLC.
Direct: 602.390.7777
Soraya Mojahed
Real Estate Consultant
602.980.6161
 
 

 Buyer Articles
• Advice for First-Time Buyers         
• 
Negotiating with Sellers     
• 
Types of Mortgages     
• 
Getting the Best Mortgage Rates
• 
Opening Escrow


Getting the Best Rates for Your Mortgage

    Naturally, you want to get the best deal for the least amount of money. This holds true for mortgage rates as well.

    A lower interest rate means a lower monthly mortgage payment, which can save you money in the long run. Also, it is easier to qualify for a lower payment than a higher one.

    You basically have two routes to finding the best rate. The first is to do all the research on your own. The second is to use a mortgage broker.

Do-It-Yourself

    With the advent of the Internet, much of this information is readily available online. Once you have educated yourself sufficiently about real estate loans, all it takes is the time and energy to sift through online resources to find the information you need.

    Rates change quickly. That great rate you find today might not be there tomorrow. Once you find the rate you are looking for, submit a loan application and lock in that rate.

    Ask the lender for a statement detailing all fees associated with the loan. Factors such as "points" (loan fee), interest rate and "garbage fees" (extra fees which some lenders charge) can vary greatly from one lender to another.

Mortgage Broker

    If you do not have the time or experience to "do it yourself," look for a qualified mortgage broker that can assist in finding the right mortgage for you. Ask friends and associates who have refinanced or purchased recently if they have a broker they can recommend. You'll want to find a broker who is energetic, flexible and knowledgeable about finance and loans and someone who has your best interests in mind.

                                                       
Financing
     
Start an Application
A file should contain all of your important financial documents. Regardless of the loan type, lenders will need information about you. Make copies of financial statements; bank accounts, investments, credit cards, auto loans, recent pay stubs and two years’ tax returns.
Check Your Credit Rating
Credit scores range between 400 and 800. 620 + is considered “good”. 680 + is considered “premium” and may possibly help get you a lower interest rate.
Below you will find the contact information for the 3 major credit reporting agencies to help you determine your credit rating. Ask your lender how to improve your credit score if you need to. Going forward, treat your credit like gold. 

 Equifax http://www.equifax.com
(800) 685-1111

 Experian http://www.experian.com
(800) 392-1122

 Trans Union  http://www.transunion.com
(800) 888-4213

Funds

    If you are buying real estate, try to accumulate funds towards your down payment, closing costs (appraisal, miscellaneous fees, escrow, title insurance, etc.) and expenses such as inspections. Furthermore, try to pay down existing revolving and high interest rate debt like credit cards.

Hint

    Now is not a good time to change careers, move your money around, or buy big ticket items. Lenders like stability. So if you are considering any major changes, it pays to meet with a lender and ask them how to proceed before you make any changes! If you are tempted to buy a big ticket item, consider the following:

    A $500 a month debt payment (like a credit card or auto loan) could lower the amount of the home you can afford by about $83,000!*

 
* Based on a 30 year mortgage at 6% interest.

 

Buyer Articles
• Advice for First-Time Buyers         
• 
Negotiating with Sellers     
• 
Types of Mortgages      
• 
Getting the Best Mortgage Rates
• 
Opening Escrow

Farsi Speaking Arizona Realtor