Best Home Loans

Whether you are buying a new home or just refinancing your home, how do you find the best loan?  You should get a quote from two or three different lenders.  When you are getting a quote you should get it in writing. 

You should get a good faith estimate and a Truth in Lending statement.  You should also ask for a 30 to 45 day lock.  The longer the better.  This means you lock in the interest rate you want for the period of time you need to close the loan. 

Interest rates tend to change daily and if you don't lock it in.  You may be facing a higher interest rate in the few weeks it takes to close the loan. Some lenders will lock in a rate and if it goes down they will give you the lower rate.

After you have your three quotes the one thing you look at to compare lenders in the Annual Percentage Rate (APR) on the Truth in Lending statement.  The government requires lenders to quote an APR so you can compare all loans.  The APR is the interest rate plus all lender charges. 

Recording fees, prepaid interest, reserve accounts etc are not calculated into the APR.  These costs are the same with all loans.  One lender may quote you a lower interest rate but his fees may be higher making another loan with a higher interest rate cheaper in the long run.  The APR is THE best and only way to compare loans.

Make sure your lender can close within the lock period.  If they don't close it by then you can loose your interest rate.  The market is picking up and some lenders are having trouble closing in 30 days.  Now is a good time to refinance or buy a home.

If you’re serious about buying Bend Oregon real estate you should sign up for Jim’s free New Listing Notification Service or call or e-mail Jim today.  Jim Johnson is a Certified Residential Specialist and has been selling quality homes in Bend Oregon since 1981. Call 541-389-4511 or see his web site to search the MLS - Bend Oregon Real Estate.  Jim is licensed by the State of Oregon as the Principal Broker for Bend Oregon Real Estate Expert.  E-MAIL