Getting the Best Mortgage for Your Columbus Home Purchase - Columbus Ohio Real Estate | Buyer's Resource Realty Services

Getting the Best Mortgage for Your Columbus Home Purchase

Columbus mortgage Higher interest rates have taken a bite out of Columbus home buying budgets. Fortunately, there are strategies to help you get the best mortgage for your Central Ohio home purchase!

1. Get a mortgage pre-approval from more than one lender. Compare the rate, fees, terms and overall costs of each financing offer. As long as the financing inquiries are performed within the same week or two, your credit score will not be affected by multiple credit checks.

2. If possible, make a larger down payment. The less you have to borrow, the less risk the lender has in the deal. This can help you earn better rates in the mortgage offers you receive. If you have other debts that are at a higher interest rate than your mortgage consider paying those higher rate debts first. If you have extra money always “invest” in paying off your highest-rate debt!

3. Consider paying a point or two. A point is interest you pay in advance at closing. Each point is equal to 1% of the amount borrowed. Paying points can help you “buy” a better interest rate. However, you’ll need to keep your home longer to make paying points worthwhile. Definitely consult with your Exclusive Buyer’s Agent to analyze what is in your best “interest.” Tip: if your lender offers to “roll” points into your mortgage balance, think twice. This amounts to paying interest on the pre-paid interest!

4. After careful analysis you may wish to pay off some outstanding credit card balances and installment loans. Eliminating or reducing your consumer debt will improve your credit score and reduce your overall debt-to-income ratio. Reducing the outstanding balances to less than 30% of your debt limit will also improve your FICO scores. In turn, you’ll qualify for better rates and perhaps a higher mortgage amount.

5. Consider an Adjustable-Rate Mortgage (ARM). These offer a fixed rate of interest for a set number of years before converting to an adjustable rate. The length and rate of the initial lock is crucial to determine if this is a good option or not. ARMs can help you save on interest during the early years of home ownership. But once the “adjustable” term begins, your payments could increase. We’ll talk about in our next blog post.

6. Get our free e-book, “How to Buy a Home like a Pro,” for more home buying strategies! It’s yours without any obligation, and you can download it right now.

As Exclusive Buyer’s Brokers, we serve your best interests at all times! Unlike real estate agents and brokerages who represent sellers, as an Exclusive Buyer’s Broker, we only represent you, the buyer, getting you the best price and terms with no conflict of interest at all times.

Understanding this distinction could literally save you thousands of dollars not only on the purchase price and terms, but also on seller concessions and home inspection issues, whether you are a first-time homebuyer or an experienced homeowner!

Contact us with your home buying questions! Remember, we are with you every step of the way…all the way home!

Andrew Show
Exclusive Buyer’s Broker, CEBA-M, MCNE, CSP, PSA,e-PRO, CREM, ABRM, AHWD
Buyer’s Resource Realty Services
Serving Metro Columbus, Ohio with Exclusive Buyer’s Agents
7100 North High Street, Suite 204, Worthington, Ohio 43085
614-888-4110 | 888-888-4110 Toll Free | 614-839-4110 Fax

Previous post:

Next post: