At First Fidelis, we strive to get every customer the home loan that is the best for their needs. We know that it can be challenging to figure out if you are really getting a good deal on your mortgage loan. To help get you started, we have created a list of the top three things that you should look for in a home loan.
1. APR Rates
While you are going to deal with APR rates no matter what type of loan you get, it is always a good idea to compare rates. APR stands for annual percentage rate, and it is the rate of interest you will pay through the duration of your home per year. APR rates on home loans can vary pretty dramatically, which surprises many first-time home buyers.
When you are looking to purchase a home, the best thing you can do is shop around for APR rates. At First Fidelis, we work with 17 different lenders to help you shop around with ease. While it isn’t always the case, often, the lower the APR, the better the deal you are getting on your home loan’s interest rate. Fees could change this, however.
Check out our tips for getting the best APR rate for more information on APR.
In some cases, inflated APR rates are hiding extra fees that you don’t want to have to pay.
Speaking of fees, you need to double check that the fees for your home loan are similar to those from other lenders. You don’t want to have to five additional fees only to find out later that another lender doesn’t charge them. Here are just a few of the fees that you may encounter in your home loan search:
- Application fee
- Credit evaluation fee
- Points fee
- Loan processing fee
- Appraisal fee
- Title search fee
- Title insurance fee
- Documentation fee
- Underwriting fee
- Escrow fee
- Prepayment penalty fee
- Credit report review fee
- Administrative fee
- Amortization schedule fee
- Financing statement fee
While these are some of the most common fees that you might come across, there are many other fees that you might notice tacked on to your home loan. Be on the lookout for any lender that has a lot of additional fees or fees that seem unusually high.
At First Fidelis, we don’t charge extra “fluff” fees that just add to your monthly mortgage payments. This is one of the many things that sets us apart from other mortgage lenders.
3. Mortgage Insurance
Mortgage insurance is required for some home loans. Whether or not you have to pay mortgage insurance could be based on the loan type, lender, or the down payment you put down. Be sure to figure out which home loans will require you to pay mortgage insurance and factor that cost into your monthly mortgage payment. Mortgage insurance is meant to protect the lender.
Contact First Fidelis today at 913-205-9978 to talk to us about finding a home loan.