11 Important Points to Consider When Shopping for Your Mortgage
How many hours do you have to work to make $40,000? If every month you had an extra $162 could you find something useful or fun to do with it? Do you realize the difference in total interest you pay to your mortgage lender on a 20 year mortgage between a 4% loan and a 5% loan is just a hair under $40,000… WOW huh? The difference in monthly payments is $162… YES that’s EVERY month. Do I have your attention? As you can see from the example above the right or wrong decision when signing your home mortgage can equate to a difference of thousands of dollars in interest paid from your hard earned money. There are very important considerations to evaluate before you commit to a 25, 30 or 35 year note. Since committing to a mortgage is the most significant financial decision most of us ever make doesn’t it make sense you learn as much as possible about the financing of your home? We recommend you take the time to thoroughly investigate all of your options!
Often the excitement of the new home purchase reduces the "mortgage detail" to not much more than an afterthought. What you read here could save you hundreds or even thousands of dollars. Your Vantage West real estate professional has well established relationships with the top lenders in your area. By aligning yourself with a professional agent you ensure all the financial steps are taken care of properly and economically with your best interest in mind at all times.
Keep These 11 Tips in Mind While Mortgage Hunting
1. Utilize a Lender With Established Ties to an Agent - Lenders are much more flexible with the real estate agents who have done business with them previously and this relationship establishes them as a team member. When you work with a Vantage West realtor the benefits of this established relationship trickles down to you and the results can literally, save you tens of thousands of dollars over the life of your loan!
2. Don't Attempt Paperwork Alone – Do you like paperwork? We’ve seen countless home buyers throw their hands in the air in frustration after attempting to wade through the stacks of intimidating paperwork required to complete the purchase of a home. We aren’t building an IKEA book shelf here… this is important stuff so you want to make sure it is done properly. Allow your real estate professional to leverage his existing connections with qualified lenders to walk you through this process. You will thank us later when you can put your mind at rest you are receiving the best possible terms on your mortgage and someone else does ALL the paperwork.
3. Look at All Your Options – How many shoes did you try on last time you bought a pair? Be sure you "try on" at least 3 loan programs before you commit to your new mortgage. Most lenders have at least 5-7 programs and will work with you and your agent on deciding what is best for you for this purchase. There is so much more than just getting the lowest interest rate; prepayment options, portability, line of credit options and early payout terms are all important options as well. Evaluate everything. After all, it’s your money you’re spending - not theirs!
4. Demand Service - There is little difference between a bank, savings and loan, or a mortgage broker when it comes to the competitiveness of their loan rates. One main difference is in the service they provide. It is their job to serve you! We understand you want to get financing and move into your new home as quickly as possible, but it’s important to remember this is a long term relationship where you will be spending a lot of money, be sure the lender you choose is prepared to cater to your needs.
5. Always Stay in Touch - You should receive a written report from your lender outlining each and every step. This report ensures no details are overlooked and there will be no surprises. If you are unsure of anything contact your realtor or lender and they will be happy to clear things up.
6. Negotiate a Flexible Loan
Posted by AJ Hazzi on
Leave A Comment