Many people use comparison shopping in their daily lives to reduce the cost of groceries, automotive repairs, or small appliances. It’s even more important to take this approach with large purchases. The “big three” include home mortgages, vehicle loans, and student loans.
How to Find the Best Home Mortgage Rates
A home mortgage is the largest loan that most people get in their entire lives. Since you will likely be making payments for years to come, it makes sense that you want to get the best rates possible.
Several factors affect your mortgage rate, including your credit score and the type of mortgage you choose. The higher your score, the better your mortgage rate will be. If you think proactively before buying a home, you can polish up your credit score to get the best mortgage rate possible.
Get a copy of your credit report and pay off any small amounts owed on past loans first. You can also open new credit accounts and pay the total off early to secure more credit and a better credit score if you don’t have much credit history.
Save up money for your down payment. The larger your down payment is for a mortgage, the lower the rates will be and the more you will save in the end, since you’ll be paying less interest in total.
The Best Method for Securing a Car Loan
You can bypass all of the haggling over prices at separate car lots when you secure a loan for a vehicle online. It’s hard to compare each vehicle that meets your criteria when all of the lenders offer different loan terms, down payments, and interest rates.
Instead of blindly settling for whatever financing the dealership offers, look online for vehicle loan offers from traditional banks, credit unions, and online lenders. The lenders will tell you the total you can spend on a car loan as well as the interest rate. If you already have a car in mind, you simply negotiate the price down to the amount the lender has approved you for and have the car dealership call the lender to process the paperwork.
Keep in mind that some lenders have a list of approved car dealerships that you may need to use to secure your pre-approved loan.
Getting the Best Student Loans
In order to get the best rates on a student loan, you will need to do some comparison shopping. Private student loans can be an attractive option with a quick application process and the ability to pay for a wider range of expenses. Typically, you receive the funds immediately after you are approved, and you may avoid an origination fee. You can even find private lenders to refinance student loans you took out in the past.
Private lenders also offer both fixed rate and variable rate loans. A variable rate private loan may work well for you, or you may want a fixed rate loan so you know exactly what all your monthly payments are. Fixed rates work best for students that work while they attend school, so they can budget their paychecks.
For the three most expensive things that you purchase in your life, you should put a lot of thought and research into which lender you choose. After all, your future is in your own hands.