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Most people give broader thought to financing a car than financing a home. It's understandable as most of us will buy multiple cars in our lifetime. But choosing a lender or home loan based solely on interest rate is like choosing a car based solely on the monthly payment. Nobody does this with car buying – you consider trade in, down payment, interest rate, monthly payment, length of the loan, and the impact on your budget for the short and long term.

Likewise, financing a home cannot be boiled down to interest rate alone. One of the reasons McGinnis Team takes a consultative approach to loans is because there are multiple factors that impact the cost of the loan. We want to empower you to make the best choice on what is likely the most significant purchase you’ll make in your lifetime.

Market rates are set by the market. Not the lender. When you see a low rate that sounds too good to be true, it likely is. To protect yourself, get a loan estimate in writing from a lender. A Loan Estimate is an actual document that details the offer from the lender. Don’t take someone’s word for it.

There are several factors beyond the interest rate to consider, but here are the top 5:

1. Your mortgage credit score

Generally speaking, the better your mortgage credit score the better rate you get.

2. Fixed or adjustable rate

A fixed rate is just that – a rate that is the same rate throughout the length of the loan. An adjustable rate is fixed for an amount of time and then fluctuates with the market.

3. The size of your down payment

While you only need 3-5% down, if you put down a larger down payment, you can get a lower interest rate.

4. Type of loan

There are 5 basic loan types (FHA, Conventional, USDA, VA, and Jumbo) and each one has different requirements which affect interest rate.

5. Term of the loan

If you opt for a shorter loan term (I.e., 15 vs. 30 years), the interest is lower.

As you can see, making a loan decision solely based on rate can actually harm you financially. Furthermore, the above list must be viewed holistically vs. In isolation. That’s why it’s important to partner with a lender who takes time to listen to your goals and consult on your best options. ...

FHA and Conventional loans are the most common. USDA is for rural locations. Jumbo loans are for those wanting to borrow an amount that exceeds the Federal Housing Financing Agent’s limit. VA loans are exclusively for Veterans and active-duty service members. If this is you, you’ve got access to the best loan out there.

When McGinnis Team reviews your application and the type of property you’d like to buy, we can advise you on the best loan product. ...

There are a lot of misconceptions about the VA loan from realtors, sellers, and veterans themselves. McGinnis Team’s personal mission is to clarify and set straight what the VA Loan is all about allowing vets to take full advantage of this well-deserved and well-earned benefit. When working with a veteran on a VA loan, McGinnis Team calls both your realtor and the seller’s realtor to educate them, so they understand a veteran’s offer is a great one.

McGinnis Team closes VA loans faster and understands the process. We are the Chattanooga branch of Benchmark Home Loans and “LAPP” approved under VA’s Lender Appraisal Processing Program. Our VA loans are processed and closed in-house without waiting for the VA’s approval of the veteran or property.

Watch HERE to learn more ...