Home Loan Shopping, Read the Fine Print
Prior to Covid 19 I did in person home buying classes throughout the year. We cover a lot of info which I do by phone now, but one important point I always make is to always read the fine print when home loan shopping.
Lenders are going to advertise their best interest rate, best terms, but not everyone qualifies for those terms. If you've listened to an advertisement for automobiles you likely have heard someone speed reading at the end. That is the fine print. Here is an excerpt from a recent newspaper advertisement for an awesome home loan interest rate.
(30 year conventional loan based on a loan amount of $150,000, 75% LTV. (specific pricing was quoted). Additional restrictions may apply. LTV and credit score may require additional fees. Rates subject to change. Payments don't include taxes, insurance)
When shopping for a home loan and you see an awesome rate, skip to the fine print before taking the information quoted in large print as gospel. If you are not putting down 25%, or you have a small loan amount, your credit score is under 740, perhaps other variables, etc., you are not getting what is quoted. This will help you as you begin to compare offers.