When should I look into getting a loan during the process for my first home?

You should consider getting a loan even before you shop for a home. Knowing your financial situation will help you estimate the price you can pay for a house. By starting early you will be in the best position to research assistance programs, save for your down payment and also improve your credit score. Also once you see a house you like sellers will consider your bid more legitimate if you can provide an approval letter from a mortgage company/broker stating you ability to finance the purchase. Start early, give yourself time - it's worth it!

What is the most common kind of loan, and how I know this for me?

The most common type of loan continues to be the 30 year fixed mortgage. This time tested product should be the first choice for nearly everyone. In fact you should only use another type if you have valid reason for it. The most common valid reason is if you are expecting an increase in income in later years.

What is the current interest rate on home loans? Have interest rates been going up or down over the last couple of years?

There are many good sources of current interest rates on home loans. However, be wary of teaser rates. Also your own credit and financial siutation will impact the rates that you receive. Interest rates have been trending up since 2005 with all indications pointing slightly upwards. In this environment, fixed rate products make more sense as adjustable rate products are likely to become more expensive.

My credit is not good. How many years do I need to wait until I can buy a home? Can I ever buy a home?

Before the current crisis in the subprime market, you stood a great chance of qualifying for a loan even with relatively bad credit. However, in this post sub-prime market crisis, lending standards have gotten much tighter. This is not to discourage you, but you will need to do your homework. Now is a good time to learn about first time homeowner programs offered by many cities/states and also non-profit organizations. Home ownership is still an option.

How would I know when the right time is to refinance? Is there a tool, website, or other resource that, like the stock market, can help me guess one this time is?

Knowing when to re-finance requires making some assumptions about your future. It makes sense to refinance when the cost of the refinance can be recovered in some time period - usually 2 years. So this means that you should stay with the re-financed rate for at least that time period (no selling of the house or taking on a new finance package).

Which companies offer the best deals on home loans?

Please use our lender bidding form to see for yourself. Please be advised that the lowest rates may not apply to your individual situation. Working with a good reputable broker/lender will help you avoid bait and switch tactics.