Shopping for a mortgage should be approached just as seriously as shopping for a car. When you purchase a new car, you usually spend a lot of time researching consumer reports, shopping different dealers for different sticker pricing, and looking into auto financing. The same holds true, if not more so, for your mortgage. Unlike a car, at least your home has a chance to appreciate after you buy it!
Here are some quick tips on mortgage shopping to help you keep your sanity:
- Shop, Shop, Shop: Do not just jump on the first mortgage offer that seems remotely appealing. If you have nothing to compare it to, then how do know it is a great deal? Shop several lenders before you make a move on establishing your mortgage. Try to obtain at least comparisons so that you will be able to determine what the average pricing should be for your mortgage.
- Don't Take the Bait: If something sounds too good to be true, then most likely it probably is too good to be true. Do not let yourself be drawn into a mortgage based solely on one appealing factor, such as a low introductory rate. Remember that introductory means that it will change after some determined period of time.
- Think Small: Do not just limit yourself to the big national lenders. Consider local and community banks that offer mortgage lending. If you are a member of a credit union, there may be benefits to you for doing your loan through them. Try to include a couple of different types of lenders in your comparison shopping to see what the difference may actually be.
- Read, Learn & Listen: Gain your own knowledge about mortgages. Learn how interest rates are set, how mortgage brokers are paid, and what standard mortgage fees are so that you aren’t gullible. Gullible mortgage shoppers can find themselves getting ripped off.
- Consider A Professional: Consider hiring a mortgage broker. They have the resources to shop your loan a lot faster and easier than you will be able to. They do this in return for a small fee paid by you directly or it is figured into the costs that the lender charges you for processing your mortgage. It pays off in the long-run to save a lot of time and hassle on your part to go down the mortgage road with a professional.
5 Mortgage Tips
These are just a few mortgage tips to get you started. Use them as a guideline when you are on your mortgage shopping expedition. Good luck, and happy shopping!