How to Learn About Home Mortgages
- 1). Before selecting a home mortgage product, it is vital to get a copy of your credit report and know your credit score. Your credit score will affect what types of home mortgages you qualify for. A good place to obtain your credit report and score is through www.myFICO.com. You are entitled to one free credit report from each of the three credit reporting agencies each year. Go to www.annualcreditreport.com for your free credit report. Keep in mind that only your credit report is free. You will have to pay to find out your credit score.
- 2). Research current market rates on the Internet or by calling around to various lenders. There are many websites such as www.bankrate.com that will give you national and local mortgage rate averages. This will give you a measuring point to compare deals. Keep in mind that the lower your credit score, the higher the interest rate on your mortgage will be.
- 3). Research various types of home mortgages. Common home mortgage options include 30 or 15 year conventional, HUD, FHA, VA, Interest Only, ARM, and Reverse mortgages. Each mortgage product is different.
- 4). Go to a bank or mortgage company and fill out a loan application. Provide the requested documentation and find out what type of mortgage you qualify for.
- 5). Compare the mortgages suggested by the mortgage broker or loan officer. Make sure you have a complete understanding of all mortgage terms.
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