Home Financing Tips

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Probably the most important aspect in financing a home is the interest rate. The lower the interest rate you can get the better off you are. You may start off with a great low interest rate and it end up skyrocketing before you get your loan documentation processed. You can "lock" in your interest rate to keep it from changing beore you get your deal set in writing.

You pay a fee for having your interest rate locked in. The fee you pay varies depending on how long you want the rate locked. Typically you choices are 30, 45 and 60 or more days. The longer you want it locked, the higher the fee is.

If you are already pre-qualified for a home loan, chances are your deal will go smoother and faster meaning that you may only need to lock in for 30 days.

Right now, interest rates are fairly low but it is still a good deal to lock in because they can change quickly.