When applying for a mortgage, a primary concern is interest rates. One question that may come to mind is why are rates higher for some loan programs and not others? Or have you ever seen a rate advertised only to find that it does not apply to you? It may help you to be aware of the following factors that, once immersed in the loan process, can influence your rate:
- It can be very difficult to place a borrower in an appropriate program until a credit report is run. This gives the lender an accurate picture of your credit history and enables them to offer suitable program options that fit your specific needs.
- The type of property you are looking to finance can have a direct impact on your interest rate as well. Again, the rates that you see advertised most likely pertain to primary residences, single unit properties. Any type of property that deviates from these – for example investment/rental units and multi-unit dwellings – can result in slightly higher interest rates and/or the points tied to those rates.
- Lastly, be advised that any additional "feature" associated with the specific loan program in which you are interested will be sure to alter your rate and/or points.
When purchasing a home, it can be advantageous to get pre-approved for a mortgage. Learn more about pre-approval vs. pre-qualification. To get pre-qualified or pre-approved with Regions Mortgage, please locate a Regions Mortgage Loan Originator or give us a call today at 1-877-536-3286.