Shopping for a Home Mortgage
Selecting the best mortgage is key to home affordability. Most people know that it is important to shop to find the best house that meets your needs. It is just as important to shop for the best mortgage to support the affordability of the home.
The Consumer Financial Protection Bureau (CFPB) was established by the Frank-Dodd Act of 2010 to protect consumers in the financial markets. One aspect of the CFPB’s mission is to protect consumers from the types of abuses that occurred during the housing market crisis that started in 2008.
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Visit the CFPB “Owning a Home page for resources to assist you in understanding the home buying process. The Rate Checker tool gives current interest rates on mortgages for your state. Just select your state, then enter the specifics of your loan (price of home, down payment amount, and credit score range). The Rate Checker will provide a comparison of interest expenses associated with different interest rates.
Remember, the FICO credit score is used by mortgage lenders to determine at what interest rate to offer a loan. The FICO score ranges from 300 (weakest) to 850 (strongest); a higher score reflects a better lending risk. In other words, people with higher scores receive the best loan terms from lenders. Paying your bills on time and keeping credit balances low are two important ways to improve your credit score.
So, be sure to do your homework. Shop for the best house AND the best mortgage.