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Thinking of buying or building that perfect home?  Before you sign on the dotted line do some research into home loan interest rates and do the necessary inspections. Maybe even a Pest Inspectorwill be needed.

Home loan interest rates combined with your individual financial status determines how much you can borrow.  This would have an impact on how much house you can buy.  Higher interest rates would mean you may have to settle for a bit smaller home than you originally had planned.

One of the things that you may consider to lower home loan interest rates is to consider if you are willing to pay points or not.  A point is 1% of the total loan amount.  It is the up front fee that would reduce your monthly interest rate and the total amount of interest over the length of the loan.  By paying points you are essentially buying your way to a better rate and trading between paying now vs. paying later.

Another factor to consider in regards to home loan interest rates length of loan.  A typical 30 year mortgage will have a higher interest rate than that of a 15 year mortgage.  The 30 year mortgage will have lower monthly payments but you would pay thousands of dollars more in interest rates over the life of the loan than that of a 15 year mortgage.

Also keep in mind your Closing Cost obligations, its best to get clarity on those with your lender at the beginning of the process.

One of the things I have benefited from in the purchase of a new home has been a New Home Warranty. A New Home Warranty helps cover typical repairs to plumbing, electrical and appliances. You never know when a furnace will go out!

When shopping around make sure you are looking at comparable points and rates amongst the different lenders. Do your homework, read, research, and compare. There are lots of credit programs out there, and finding the right one that fits you can be a daunting task. But, its worth it. Remember, a mortgage is a 20-30 year investment, make sure you have all the information you need to make a qualified decision.

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