The idea of exploring the neighborhood to find a dream home is an incredibly exciting moment when you’re buying a home. But you come back to earth when faced with the challenge of choosing a lender and mortgage product.
The variety of interest rates and terms and conditions can be bewildering. It’s important that buyers consult a mortgage broker, who will have relationships with multiple lenders.
It’s also a good idea to approach the bank where you’re currently a customer. They’ll know that if they don’t do you a square deal, you’ll take your business elsewhere.
You’ll need to be as focused on organizing your finances as you should be when choosing a home. A wrong decision can be costly.
To help you, I’ve listed five tips for finding the best mortgage deal. I hope you find them helpful.
The people closest to you can be the best way of finding a good lender. If they’ve had a good experience with a bank, broker or credit union, then what’s not to love about that! But your due diligence can go a little further. Check out customer reviews to get a wider view of each institution’s services.
You should consult brokers and mortgage bankers to discuss the best deal on interest rates. Right now, it’s worth considering locking in a rate because America’s inflation is pushing rates higher. Often, the lowest rates come with the highest fees. So, don’t immediately fall for the headline percentage rate.
Experienced buyers will seek three quotes from lenders and ask each to pitch for the business, playing one off against the other. There’s nothing wrong with that, if you’re prepared to read the fine print. If all this high-powered finance makes you nervous, find a broker and rely on their expertise.
You should always understand the terms and conditions of a mortgage. For example, if you have a super-low rate, you might be charged a penalty if you try to pay off the loan early. Check the fees the lender wants to charge, too. Negotiate hard if you don’t think they’re fair.
Even with a great mortgage deal, you need to carefully analyze the impact of repayments on your cash flow and social life. It’s never a good idea to be a slave to your mortgage. It can be a burden if you’ve borrowed too much.
Marie Sells Dallas 