Owning a home is a dream many people aspire to. Finding the money to buy one when you want is another matter. Thanks to the ever-changing world of finance and real estate, however, getting a home loan has never been easier.

The Rise In Popularity

With the unemployment rate at an all-time low, more and more people are able to purchase homes. The demand for mortgages has increased as a result and so has the popularity of getting one. Between 2000 and 2012, the percentage of American families who could qualify for a mortgage tripled, according to the United States Census Bureau. More and more people are able to purchase homes because interest rates have remained low due to the efforts of governments and central banks around the world. In fact, between 2007 and 2014, the interest rate on a 30-year mortgage fell from 7.1% to 3.9%, according to the Federal Reserve Bank of New York.

Flexible Terms

Because people need to be able to afford their mortgages, most lenders offer variable rate loans with flexible terms. This way, if rates rise, you will be able to make up the difference without having to move. Most mortgages have flexible terms as well, so if you are approved for an interest rate you prefer, you can use that rate for the entire life of the loan. This may sound like a gift, but it is frequently a necessary evil when it comes to securing a home loan. Many people end up spending more than they would at a regular, fixed rate because the rates change frequently and the extra charges make the interest rate seem more expensive. The key takeaway from all of this is that if you find a lender you like, you can be sure that you are getting a good deal.

Get Pre-approved

When you start looking for a home, the first thing you will want to do is to get pre-approved for a mortgage. This way, you will be able to see how much you can actually afford before starting a negotiation process with a lender. Getting pre-approved ensures that you are choosing a lender you can actually work with and that you are not overpaying due to miscommunication or hidden costs. It is also a good idea to get multiple pre-approvals from different lenders, so that you can find the best rate and the most suitable terms for your needs. Most mortgage lenders operate in multiple states and territories, so it is important that you contact as many mortgage lenders as possible, especially if you are looking for interstate or cross-country moves. This way you can get pre-approved before you start your search, in case you find a better offer after you submit your details online. This is something to keep in mind if you are looking for a new home and are considering buying one that is out of state or out of country as well.

Shop Around

When you have found a lender you like, the next step is to shop around for the best possible deal. This is especially important if you are looking for an adjustable rate mortgage (ARM) as there are many different types of ARMs out there and not all of them are created equal. For instance, if you search for a 5/1 ARM on Google Finance, you will get a list of results that include both reputable lenders and also some that have been discredited. When you are negotiating the rate and terms on an ARM, make sure you compare apples to apples by going with a lender that is established and reputable in your area. In the event you find a better rate and terms from a lender you trust, it is usually a good idea to go with that lender rather than risk getting burned by an unscrupulous lender. Also, make sure you shop around for the best possible deal before submitting your application. The more you know about what is going on, the better your chances of getting the results you want.

Use Your Resources

If you are looking for a new home, it is important that you use all of your resources to your advantage. This includes, contacting lenders, getting pre-approved, and searching for the best rates and terms available. If you want to get a good deal, you will need to look for the best possible terms and rates, but it also means you will need to do some homework and find all of the information you can. It means searching online, calling lenders, visiting real estate websites, and reading reviews, among other things. Make sure you put in the work and do everything you can to get the best possible outcome from this process. This way, when you find that perfect home you have been searching for, you will feel confident that you made the right choice and were able to secure a good loan to pay for it.

Follow The Steps

Last but not least, make sure you follow the steps laid out by the lender you choose. The majority of lenders have an online portal where you can fill out forms and submit documents in a matter of minutes. Make sure you read the agreement thoroughly before you sign it, and follow the instructions carefully. This way, you will be sure to get the results you want and avoid any unnecessary complications. If you follow these simple steps, you will be able to get a good loan and buy a home you can afford. Just remember to shop around for the best rate and terms available, and don’t forget about pre-approved!

Find a reputable lender you can work with and don’t be afraid to ask questions if you don’t understand something. Most regular people are under the assumption that all mortgage lenders are the same and will charge them exorbitant fees and interest rates. However, this couldn’t be further from the truth. Most mortgage lenders will work with you and try to accommodate your needs as much as possible. With a little bit of research and asking questions, you can find the perfect home and the perfect mortgage for you.