Home of most of the facts 5 buyers know

For many topics, people assume more than what they do. This is particularly dangerous in the House, buying processes. Recent Zillow mortgage market survey indicates that there are several aspects of the House, buying processes continue to evade potential buyers. Here are some surprising results of our findings, with five things most buyers don't know, but it should.

1. Mortgage rates vary daily

Fifty - five percent of the potential buyers don't realize that mortgage rates, which are determined by a series of factors, can - and - change every day (and sometimes more than once a day) if some economic reports are released. While monitoring the rates, you could save your money. For example, a change in rate of 0.125 to 0.25% could mean thousands of dollars in savings each year. To get the best rates, monitor the. The best indicator is the movement of the binding of the Treasury Board for 10 years. And Don't stop at the first rate that see you - shop autour.

2 Fresh lender change and are negotiable

When you apply a loan, the essence is that you will have to pay lender fees. These fees - mounting of fresh products to declare the cost of credit for the cost of assessment and more - can add up quickly. The good news, and what percentage of 34 of potential purchasers know, is that costs vary not only from one lender to another, but they are negotiable. That is why in addition to shop for different mortgage rates for various lenders.

3 FHA loans are available to all purchasers

More than two to five potential house buyers (42%) think that only first time buyers eligible for a loan from the FHA mortgage insured by the Federal Administration of the House. This is not the case. In fact, these loans are available to all buyers who meet the eligibility criteria. Among the main attractions of the FHA loan: a minimum deposit, relaxed credit score requirements, low costs and low interest rates.

4. Interest rate on arms reset always above

While the adjustable-rate mortgages (arms) rates increase often after five years, they can also decrease. Potential buyers may not realize this because many people (57%) know simply of adjustable-rate mortgages how to work. The interest rate on an arm is composed of two parts: the margin, which is a fixed percentage and the index, which will both up and down with the General movement of interest rates. If you plan on living in a House only a few years, an arm might be a good loan option.

5 Pre-qualified does not mean much

Just because you have a "pre-qualification" for a loan does not mean that you have obtained funding, however, 37% of potential buyers think that Yes. When you are "pre-qualified", a lender has developed approximately how much you can afford, but they do not run your credit or requested any kind of documentation to verify the information you provide. It is not until the lender has approved your loan under these conditions that you have obtained financing for your home purchase.