Buying a home can be a confusing and overwhelming experience; you have plenty to do. First you’ll need to find a licensed real estate agent to find you the best homes on the market. Next, you’ll need to be finding a lender that suits your needs. Many buyers don’t realize that they can actually shop different lenders to see what kinds of interest rates are available to them. That’s right, as a buyer, especially if you have good credit and an easily verifiable income; you have plenty of options on lenders.

Shopping for interest rates, however, is a bit more complex than calling around once and asking each lender what they’re able to offer. There are lock-in periods, loan pricing differences and even floating rates. When you’re shopping for a loan, there are three things you need to know:

Rates vary by the day – Interest rates vary by the day, and sometimes even by the hour on hectic days. You can’t always trust newspaper ads, since they have been placed at least a day in advance. It’s very important to call prospective lenders on the same day and even within the same hour to be as accurate as possible.

How many points you’re wanting to pay – Like we mentioned in the last article, the amount of points you’re willing to pay upfront will affect the kind of interest rate you can receive. If you can afford to pay more in the beginning, and you plan on keeping the home for the foreseeable future, you should pay more points for a lower interest rate. Run your numbers to make sure you’re making the smartest financial decision for yourself.

How long you want to lock in the rate – This may not be something you know quite yet, especially if you’re an overachiever looking at rates far before you’ve found your home, but it doesn’t matter. Lenders just need some kind of parameters in order to quote you best. Once you apply for the loan, you’re able to lock in your rate for a certain number of days. This is helpful, since rates can increase daily and you may not always be able to find the lowest prices.

Lenders understand you’re probably calling around to get quotes, and they will want to impress you with their best offers, but some may promise more than they can deliver. Make sure you write down each lender’s terms and rates, so you have accurate records, and make sure to write down the name of the loan officer or department representative that you spoke to. Once you’re done shopping, it’s time to get pre-approved for a loan and start hunting for the best Denver real estate for sale!

About PorchLight Real Estate: PorchLight Real Estate Group has the most experienced and knowledgeable Denver real estate agents in Colorado. For more information about homes for sale in Denver CO or specific neighborhood homes please visit www.porchlightgroup.com.

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