Are you shopping for a loan? Here’s what you should note.
Are you toying with the idea of becoming a homeowner? Perhaps you’re steadily saving for a down payment or you’re already looking into home loans. Before you do start comparing loans, there are a few things you need to keep an eye out for to make sure you’re getting the best deal possible for you.
It’s important to get a loan with a good APR (Annual Percentage Rate), especially if you’re looking for a longer repayment term. The longer you take to pay back a loan, the more interest you’re going to have to pay. Your credit score will largely impact how good of a rate you end up getting. Be sure to read the fine print, too, as lenders may lure you in with a great APR, but then pile on fees and charges.
No Repayment Penalty
If you believe you can repay your loan before the period ends, you’ll want to look for loan with no repayment penalty. If you don’t have a flexible payment option with your loan, early re-payments (or paying off your entire loan before the loan term is up) may result in a penalty fee.
Loans can often come with hidden fees, such as origination fees (fees for taking out the loan), loan application fees or disbursement fees (charges when you have received the loan). If you aren’t aware of the extra fees that you’re locked into paying, your loan may be a lot more expensive than you had desired.
Of course, with any form of borrowing, it’s crucial that you can afford it and make the required payments. Contact Dean Rathbun when it comes time to finding the perfect plan of action to buy your home. We are happy to help you.