Have you been looking at mortgage rates and wondering whether this is a good time to buy a home? Before you start looking at home prices and dreaming about what your new home is going to look like, it’s a good idea to spend a little time learning how the borrowing process works and how you can best prepare yourself for it. The time you put in up front learning about mortgage loans in Hollidaysburg, PA will help you to both choose the right loan for your situation and to better estimate how much you’ll ultimately be able to afford to spend.
One of the biggest issues that confuses potential borrowers is whether it’s best to go with an adjustable or fixed rate loan. Adjustable mortgages got a bad reputation a few years ago when a large number of people used them to buy homes that they couldn’t really afford, and ultimately ended up defaulting. The reality, though, is that they can still be a good choice. For people who plan to spend fewer than 7 years in the home, the amount that they save by getting the initial low rate for the adjustable mortgage will generally keep their overall spending lower than it would have been with a fixed loan. When you’re buying a house that you intend to keep for life, on the other hand, locking in a fixed rate is usually the better choice.
As soon as you begin thinking about shopping for mortgage loans in Hollidaysburg, PA, it’s a good idea to take a look at your credit history. Every citizen of the United States is entitled to a free copy of this report each year from each of the major credit bureaus, so it won’t cost you anything to check it. Looking at your report is a good opportunity to get a handle on what you owe, what accounts you have open, and whether there’s anything that might make a bank hesitant to lend to you. It’s surprisingly common for people to have some kind of error on their reports, including debts that are actually owed by someone else. Clearing this kind of issue up in advance is the best way to make your loan process go smoothly.
