Whether the market is cool or hot—like it is today in many places—purchasing your ideal home requires careful navigation of the mortgage process

Whether the market is cool or hot—like it is today in many places—purchasing your ideal home requires careful navigation of the mortgage process

Jump in too quickly and you might face higher fees and interest rates. Take too long and, in today’s market, you might wake up to discover your dream home is long gone. The Pinnacle Bank Mortgage Center provides the tools you need to get started with the mortgage process.

Over-Prepare

When it comes to home loans, thorough preparation makes perfect sense. Exhaustive prep will pay significant dividends because you will be ready to answer all questions, display necessary documentation and make a well-measured offer when the opportunity arises. A thorough compilation of data will also help you refine your budget and other priorities.

Your first step is to check your credit score and understand exactly what that score means. Once you understand your score, you can accurately assess your spending potential and budget for new and anticipated expenditures. With your budget in mind, take a moment to reassess if now is the best time to buy. This is an excellent time to discuss your decision with a network of trusted advisers. Once you’re comfortable, it’s time to create your loan application packet.

Know Your Loan

No two home loans are the same. Different loans offer different terms, although 30- and 15-year loans are the most common. The term of your loan affects your interest rate as well as your monthly principal and interest payments. When you’re deciding what term works best for you, it can help to calculate exactly how much interest you will pay over the life of the loan. In addition to loan term, you want to consider what type of interest rate best fits your circumstances: fixed rate or adjustable rate. A fixed rate locks in your interest rate for the full term of the loan. An adjustable rate mortgage (ARM) begins with a lower interest rate than a fixed-rate mortgage, but the interest rate fluctuates based on the federal interest rate index.Continue reading