Buying a home is a major financial transaction, especially if you’re going to need mortgage financing to help cover the purchase cost.
The only way to know if you’re getting the best deal on a mortgage is
to shop around, but with so many different lenders vying for your
business it can be very tough to choose which mortgage is the best fit
for your own situation.
In this post we’ll share how you can compare mortgages from different
lenders or underwriters so that you can get the best possible deal on
your mortgage loan.
Start By Comparing Interest Rates
The most important factor in your mortgage is the interest rate that
you’ll be required to pay so this should be your starting point.
While most lenders will keep their rates competitive with one
another, you may find that there are discounts available based on your
credit or financial history. You might also find that some lenders are
willing to adjust the rate based on how long of a mortgage term you’ll
need, and how much you’re investing in your down payment.
Get An Estimate Of Your Total Closing Costs
While the number that you’re likely focused on is the total monthly
payment that you’ll be making for the next few years, you’ll also want
to find out how much in fees and closing costs you will have to pay in
order to take out the mortgage.
Every lender charges different fees and the amounts can vary wildly,
so be sure to get an estimate on these costs to find out how they’ll
affect your home purchase.
Watch Out For Early Payment Penalties
Finally, you’ll want to keep an eye out for early repayment penalties
as these can cause you a headache later on if you decide you want to
pay your mortgage off a bit faster. The ideal mortgage is one that
allows you to repay the principal amount at any time without facing a
penalty, but depending on the other terms that you require you might
need to shop around a bit before you find a mortgage like this.
You may find that comparison shopping can be a bit overwhelming with
so many different mortgage options, terms and interest rates to choose
from. If you have questions or you need help sorting through it all to
determine which mortgage suits you best, contact your local mortgage
professional today to book a quick consultation.