Know How To Shop For A Mortgage

Once You Are Satisfied You Are Working With A Top-Quality Mortgage Advisor,
Here Are The Rules To Follow To Shop Effectively...

If It Sounds Too Good To Be True, It Probably Is. Mortgage money and interest rates all come from the same places and if something sounds really unbelievable, you may want to ask a few more questions. Are there pre-pay penalties?...extra fees?...what is the length of the lock-in?...etc.

You Get What You Pay For. If you are searching for the cheapest deal out there, please understand that you are placing a very important financial process in the hands of the lowest bidder. The best you can expect is little advice, experience and personal service. The worst case is that you have a loan that will not close at all. All too often you find that the cheapest quote is not the best until it is too late. Know that the cheapest rate with the Wrong Strategy can cost you thousands more in the long run.

Make Correct Comparisons. When looking at estimates, don't merely look at the bottom line. You must compare lender fees to lender fees. Make sure fees are not hidden. Have your loan officer detail every fee and condition of the loan before you decide.

Understand That Interest Rates And Closing Costs Go Hand In Hand. You can have an interest rate you desire but you may pay more in costs if the rate is lower than the norm. You can pay discounted fees, reduced fees, or no fees at all but understand that this comes at the expense of a higher interest rate. Either of these balances or something in-between might be right for you. This all depends on what your financial goals are.

Understand That Interest Rates Can Change Daily, Even Hourly. If you are comparing lender rates and fees, this is a moving target on an hourly basis. If you are getting two quotes, you must get them at the same time on the same day with the exact same terms, conditions and fees. You must also know the length of the lock you are looking for since longer lock times usually come with slightly higher rates.