Right now is one of the best times to get a new home loan or to refinance a home loan. Rates are near historical lows with some mortgage rates in the Tucson area below 3.5% APR. For any person seeking credit now is the time to do so. Here are a few tips that can any potential borrower capitalize on these exceptionally low rates.
First Steps in Getting a Home Loan
The first step that a potential borrower for a home loan in Tucson must take is to obtain his or her credit report. A credit report contains a person’s whole credit history. Lenders factor the details in a person’s credit report heavily when determining whether or not to approve that person for a home loan. Of course, there are plenty of other factors, but the credit report is one of the most important factors. If there are any errors or negative marks than can be corrected quickly, then it is always wise to attempt to take care of and have them removed as quickly as possible before applying for a new home loan.
Beyond the credit report, a lender for a home loan in Tucson may ask for some other bits of information such as income verification, past tax returns, and bank statements. All of this information requested is pretty standard. A loan officer or mortgage broker can certainly help with the entire process.
Loans and Mortgages
Now there is a difference between loan officers and mortgage brokers. The main difference is that a loan officer actually works for the lending institution while a mortgage broker is a third party person that acts as a conduit between the borrower and the lending institution. Both make the process of applying for and obtaining a home loan much easier. Regardless of whether the person is a loan officer or a mortgage broker, they must be licensed within the same state as the loan is originated. So for borrowers in Tucson the loan officer or mortgage broker must be licensed in the state of Arizona.
If a borrower is just interested in a new home loan but is not ready to speak with a representative yet, then there are many exploratory options available, as well. There are plenty of free mortgage calculators and even some loan estimators which can give potential borrowers an idea, based on several factors, of how much the person may be eligible for and how much the monthly mortgage payments may be for that particular loan.
Overall the process of applying for and obtaining a new home loan is much easier than in years past. Now with rates as low as they are it gives a person even more reason to apply for a new loan. At the very least, a person should refinance to capitalize on these low rates.
Rob Sanchez is a senior loan officer for Nova Home Loans, a full-service mortgage bank that has helped customers finance their loans for more than 30 years. Financial services include mortgage home loans, first time buyer loans, refinance loans, a home loan in Tucson, and more. Service areas include Tucson and Green Valley, Arizona.
