Organize your loan options with a spreadsheet
Choosing from the variety of loan options available is a complex process. There are multiple factors for you to consider such as different loan terms, time limits and monthly payments. So, finding the best deal for you can take some work. The first step is to ask your Realtor and your friends, family and others for suggested lenders. Then, create a spreadsheet. In the first column put the lending institution's name. In the rows, itemize the features each offers under such options as mortgage type, loan term, minimum down payment, interest rate, points and fees, closing costs, loan-processing time, prepayment allowance, and monthly payment. This will not only help you complete the spreadsheet but also give you a good idea about the customer relations experience you could expect from them today and in the future. At this point, you will begin to understand the differences in mortgage terms available, and become familiar with the buzzwords and categories that pertain to the mortgage market. Compare your notes and determine what lender or lenders offers the best options for you and your considerations. One last main point: your credit score, especially today, will be a major determinant. For example, if you see an advertised rate at 4.5 percent, read the fine print because it may be a rate for a person with 790 or better credit score.