How to Find the Best Deal on Your Mortgage

May 17, 2015

How to Find the Best Deal on Your Mortgage

When you go out shopping, most of us would really go out there and find the best deal that you can find. This is in order to get the best value for your money. This is also quite well and true when it comes to buying a home but it also comes in a bigger perspective. When buying a home, you will not only shop for a home but you would also need to shop around for a home loan.

The key to finding the best deal for your mortgage is to also shop around, as with any other shopping, it is advisable to don’t stop at the first option that you get. If you are able to get even a little bit of savings on your monthly payments, it could still go on a long way.

Before you go out there and shop for a home, make sure that you consult with a mortgage professional to check whether your credit is in good order, otherwise it could take months to correct. Another point to consider is that how much house you can afford? A good mortgage professional will be able to lead you as to what is the best loan that will fit you and your needs.

Here are also some great tips on how you can be able to get the best deal for your mortgage:

Get your free credit report – this is quite paramount because you will be able to know where you stand and get to plan ahead and see as to what is the best option for a loan you can get.

Compare everything – when getting quotes from different companies, don’t just look at the interest rates. Buyers should also look and compare all the rates and fees; this includes origination fees, points and other fees charged by the lender.

Interview the actual person who will handle your loan – they could either be a mortgage broker, a bank employee or a loan officer. It is best to check for their qualifications and experience because even good companies hire really bad people.

Make sure that lenders offer the best program for you – not all lenders offer FHA, VA or USDA Rural development loans. Loan-to-value ratios and credit requirements also vary by lender. Variety can always provide consumers with the option to get the best of everything that the market has to offer.

Give the loan officer all details about your situation when asking for quotes – change in circumstances can either make or break your loan application, this is why it is important to give them a thorough explanation of your circumstance whether you have suffered foreclosure or recently changed careers so that the loan officer can be able to provide you with the best option for your loan.

Paying more upfront or get a lower interest rate? – that actually depends whether you are planning to keep the loan for 30 years, then it is advisable to pay more upfront in order to get a lower rate. But if you are thinking of selling or planning for a refinance over the next few years, then paying more won’t make any sense.

Ask what documents will be required – Find out what is required so that you can be able to prepare and provide the necessary documents for a loan application.

Get to know who you’re dealing with when you fill out an online form for rates – A human broker can provide you with a sound advice for your mortgage, while some online forms will reject your application without even knowing the real score and leave you out of the blue. Some application online will ask for your significant personal information before giving you quotes.

Plan for costs that are not charged by the lender – plan ahead for additional costs such as title insurance, real estate transfer tax and required escrow for property taxes and homeowner insurance. This will save you the stress and hassle by being prepared.

Ask for the Good Faith Estimate worksheet and not just the GFE – Since most people consider the Good Faith Estimate to be confusing. The GFE is required by law, but will be replaced on August 1 with a more useful document. In the interim, ask for the complete worksheet and make sure it documents all the fees.

I hope that this article will provide you with some great tips in order to find the best deal for your mortgage. You can also get in touch with a professional agent to assist you with your home buying process.

Source: http://money.usnews.com/money/personal-finance/articles/2015/05/04/10-tips-for-finding-the-best-deal-on-your-mortgage