Top 10 Things To Find The Best Mortgage
When people look for a new home for the first time, they just consider buying the house. What they do not consider more is looking for a mortgage that best fits them. It is important to shop around for the loan and just settle for the first one they land into.
There are a lot of loans to choose from and saving up even a few bucks in the monthly fees can mean a lot in the long run as loans are meant to be for a long time. You can ask a professional mortgage dealer to handle your loan application. With the professional mortgage dealer, you will be able to know the cost of the house that you can really afford and the best loan you can handle. Also, mistakes with your credit will more likely be avoided.
It is also better to go directly to the bank, lender or broker rather than apply for a loan online. People have different situations, and meeting with the person handling your loan can help them consider what is best for you.
While banks have limited options as they only venture with their own products, a mortgage broker can offer more choices because they can open it to many lenders. Seeing the competition among lenders, they may offer better pricing than banks.
Here are ten other things you can do to land the best mortgage deal.
See the Good Faith Estimate Worksheet
As required by law, you will be able to see the GFE. You may be confused with this document, nevertheless, ask for the Good Faith Estimate worksheet with the itemized fees you are likely to pay.
Interview the Handler Personally
This person could be a bank employee, a mortgage broker, or a loan officer, but always have a time to meet in person. Know the person’s experience, ask for references, and any related association he or she belongs to.
See the Details
The companies will provide quotes, do not concentrate on the interest rate, rather look through all the details as there could be other charges. Do not be fooled by a quote saying ‘no fee’ because the fee may likely be already included in the rate.
Get Ready for more Costs
You are not just paying for the mortgage, there will be more payments that what meets the eye such as homeowner insurance and property taxes. Find out if a closing agent could handle your escrow to save you thousands of dollars if not hundreds.
Have your Free Credit Report
Seeing your credit report can give an idea on where you stand financially and when it comes to your credit points. This does not give you the upper hand, but at least you got an idea.
Know the Lender’s Program
Lenders offer various loan-to-value ratios, down payment requirements, and credit requirements. Make sure the best is being offered to you by comparing the choices from different lenders.
Tell Everything to your Loan Officer
It is imperative to tell everything to your loan officer, especially if you recently changed careers or you have experienced a foreclosure. You may encounter some problem, but at least your loan officer can help you with the best solution.
Know What You are Dealing With
One you fill out the form, know the process, will the dealer call you, will necessary information include your financial details? When asking for quotes, it is better to deal with a real person rather than online as a real person can offer more flexible ideas.
Upfront or Lower Interest Rate
This will depend on you future plans with the property. If you want to keep it, you can apply for lower interest rate, however of you plan to sell it or refinance you might want to pay upfront.
Prepare the Documents
Know the needed documents and prepare them. You may need to provide a lot of documents so be ready.