As U.S. interest rates have begun climbing 7 basis points over the past two days many are scampering to find the lowest rates, lowest fees and bargain loan programs available. The questions are when, where and how? When should you begin shopping low rates? Where should you go to find the best bargain loan programs? How do you get started?
First it's important to acknowledge the state of the economy to determine your best moves. At last report the best rates were at 6.32% as of March 6th. But rates have steadily increased to 6 additional basis points since then. Looking at last years rates at this time we see a difference of 7 basis points in last years favor. So what? This indicates a market rebound. This much anticipated rebound was mostly impacted by commentary from Greenspan that was more optimistic than the House testimony from last week. The oil service (OSX 1.9%) and natural gas (XNG 2%) sectors are also posting strong gains. As economic news dominoes into positive territory we can expect further rate increases in the days to come.
This being the case it's time to get down to some serious bargain loan hunting before the bargain programs are all sold out. Where to start?
It all has to do with the kind of loan your looking for. It’s best to find an information resource that specializes in the type of financing you need be it a home loan, refinancing or debt consolidation loan. These resources will not only point you in the right direction but also provide tools, tips and guides to get you on your way to money saving loan shopping online.
First steps in shopping for a loan
1. Calculate what you can afford Remember to include rates, points and fees.
2.If purchasing a home include insurance and taxes.
3. Get your credit report
4. Put your financial papers in order These would include:
Bank statements
Mortgage papers
Insurance papers
Car loan papers
Other loan documents
Credit reports
Other out-standing debt.
4. Estimate your monthly/annual income
5. Income tax payments due
6. Now figure out your net worth by calculating your assets Include investments, auto, home, CD's bonds stock estates etc.
7. Calculate your expenses
8. List any outstanding debt
Now adjust the amount you wish to borrow based on true net worth and or outstanding debt you wish to satisfy. You are now better prepared to ascertain what is needed and what you can afford to request.
Going Online
Thanks to the Internet you can become a part of a highly competitive marketplace of lenders competing for your business in a structured bidding system. One such resource is at
http://www.mortgageloansearch.net. Consumers shopping for the lowest rates and attractive loan programs simply complete one application that is submitted securely to several lenders at one time. Lending networks like Loanweb.com offers low rate shopping in a highly competitive bid-for-your-business marketplace.
Lenders who win the bid tend to value their potential customer more and are more often willing to offer you a much better product with greater incentives and lower rates than their competitor. You have more options in choosing the loan that's best for you.
Online Loan Shopping Tips:
1. Don't accept the first or second loan offer.
2. Let lenders know if someone gave you a better offer and let them WIN YOU OVER.
3. Next, check rate trends and calculate loan rates and payments according to the lowest rates offered. Firmly hold to the lowest rates within your reach.
4. Don't give the impression that you absolutely must have this loan now. Your greatest bargaining position is not desperately needing the product being offered.
5. Ask about fees up front. Use the amortization calculator to figure in fees, insurance and tax payments.
FIND THE RIGHT LENDER:
It is always prudent to seek recommendations from credible sources regarding the lenders who make you an offer online. Seek individuals who have experienced the loan process and closing with the lender, broker and loan officers in question. Among the questions you could ask are:
1. Did the loan process go smoothly?
2. Were all your questions answered?
3. Was the process explained to you?
4. Were all fees discussed candidly?
5. Were there any undisclosed fees charged at closing?
6. Was every effort put forth to give you a deal to your satisfaction?
7. Were you pressured to sign anything against your better judgment?
8. Were all papers signed up before funds were issued?
9. Was the settlement package complete?
10. Was there ample time to review all documents before signing?
11. Did you receive funds in a timely manner?
12. Were certificates of satisfaction and deeds of trust properly registered at the courthouse and filed? Were you given originals upon satisfaction of payment?
If you get a positive response regarding the above and you are satisfied with rates and fees offered you’re likely to come out the winner.
Often the key to getting the best deal in interest rates is being at the right place at the right time. While rates are still at an all time low consumers do well to prepare for their best financial deals now while there's still time.
