The housing market may be in recovery and some analysts are predicting that mortgage rates will be heading upward. In that case, and in any case prospective, current home seekers as well as homeowners are always looking to lock into the lowest interest rate possible.

Here are some tips to help home buyers shop for the best rate:

Before you call your lender and ask for the best rate you need to know two things:

1. The number of points you want to pay.

2. The length of time you want to lock in the rate.

Knowing what you are planning on doing with your home and how long you intend to stay there will give you a baseline for comparison of rates.

Don’t just call any old lender advertising the lowest rates. As not all real estate professionals are alike, neither are lenders. You need a reliable lender who will not try to trick you into a lower rate only to change the rate on you later.

The best way to find a lender is through a referral.  Once you have found a lender you will want to shop around for a few more. Make sure to be up front with everyone, and be consistent. Call them all on the same day and provide the same information to everyone.

The interest rate is not the only fee to consider when borrowing money to buy a house. Be sure to ask about all the additional fees associated with the loan.

For more information check out the Truth in Lending Act.



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