Lender's terms and qualifications

To investigate lender's terms and qualifications, the buyer must first decide what kind of contract he wants. He needs to gather information on the residence and his own financial statements and indebtedness. Some firms offer better terms than others. Many times, the best benefits for a low interest home loan will be that it requires no points or fees and the ability to make a seamless refinance. These contracts have different types of terms: fixed rate mortgage (FRM) and adjustable rate mortgage (ARM). People who plan to live in their residences for more than three years should try to get a FRM, since the monthly payment will not change over the life of the low interest home loan. People who plan on selling the residence within three years might want to consider an ARM, since they will not be in danger of paying higher payments if the financial climate changes.