If you are shopping around for a mortgage then chances are you are in the market for a new home. Congratulations if that is the case! Buying a home is always an incredibly exciting time. Of course, it can also be very stressful.
Buying a home is one of the biggest financial expenses a family can have. This is why choosing the right mortgage is one of the most important decisions you will make.
The task of choosing the right mortgage can seem difficult. However, with a little preparation and some forethought, you can make the right decision. Once you do, you will be enjoying your new home in no time.
- Before you look for a Mortgage, Make sure you are in the Best Possible Financial Situation. In order to get the best rates for your mortgage you will need to have a stable financial situation. This means that you will need to have good credit, a low debt ratio, and a stable job.
You should not change a job if you are anticipating looking for a mortgage. For the best possible chance of rates, you need to have your job for at least one year though two years is preferred.
- Shop Around before Making a Decision. Just because a realtor recommends a finance company to you, doesn't mean you have to use it. Take the opportunity to use the Internet, and your local area to shop around for a mortgage.
You can call any company you want and ask for rates on their lowest mortgages. However, you should make it clear that you are asking for quotes and not attempting to be approved at the time of your call.
- Remember that the Lender Works for You. If you end up in a situation with a lender that makes you uncomfortable, you are under no obligation to have to deal with any mistreatment. Lenders are working for you and their commission is your payment to them.
Just as your boss has a right to dismiss you if they are not happy with your work, you can dismiss your lending agent if you have a problem with them. If you do so, it is up to you to decide if you want to remain with the company you were dealing with or if you want to find another institution.
- Ask about Rates, Points, and Fees. When a mortgage broker quotes you an original price it may not include all of the extras that often come up later. It is your responsibility to ask if there are any catches to the price that you are being given.
Taxes and fees are usually a given in a mortgage. However, if they are not added into a quote you have been offered it could make a great mortgage price turn sour. Remember that a big part of finding a good rate is doing your homework!
- Use your Quotes to Your Advantage. If you have good credit and are financially able to receive the best possible quote around, then you can use this to your advantage.
Print or write out all quotes you are given, and offer them to the other lenders you deal with. Most lenders are going to be willing to match or try to beat a good offer if they see you might be going with another company for your mortgage instead.