How to Get the Best Mortgage
A home is likely one of the largest purchases you’ll ever make in your life, and chances are that you’ll use a mortgage loan to finance the purchase. Since you’ll be paying your mortgage for a while, it’s worth spending some time and effort upfront to get the best mortgage possible.
Something many buyers don’t realize is that mortgages can vary significantly from lender to lender. Instead of being a set percentage, mortgage interest rates, fees, and terms are determined by the lenders. That makes the mortgage selection process more like car shopping than anything else–you can go from lender to lender to find the one that offers the best deal on the mortgage you want.
As you shop around, you should pay attention to the differences between the rates, fees, and terms each lender offers. But don’t just focus on interest rates! While the interest rate is an important component of the mortgage, it’s not the only factor you should consider.
You should also pay close attention to the mortgage fees that you’ll pay at closing. These differ from lender to lender, so make sure you understand each fee listed. Some less trustworthy lenders will sneak extra fees into a mortgage while tempting you with a lower interest rate, which is another reason to pay attention to the fees.
Additionally, pay attention to the terms. You might be able to get a lower interest rate by having a 15-year loan term, but does it make sense to have a higher monthly payment? Your agent and your lender can help you decide which option is best for you.
It’s also possible to ask a lender to take another look at the mortgage if you were able to find a better rate with a different lender. Most often, they’ll try to make something work for you. Remember that everything is negotiable–a mortgage isn’t an off-the-rack product; it’s a deal just like everything else in real estate.
If you have any questions about the mortgage or the terms, ask the lender to explain it. They should be able to answer all of your questions and help you feel confident and knowledgeable about what you’re getting into. Your agent will also be able to help with this.
If you take the time to shop around, you can decide on a lender and feel confident that you’ve secured the most favorable loan to purchase your home. There are several lenders in our area that are trustworthy and will work to get you a great mortgage.