How to Get A Great Deal On A Mortgage
If you are looking at buying a home in the near future, there are some steps you can take that will help you to get a great deal on a mortgage. Buying real estate can be scary as it will likely be the biggest purchase as you will make in your entire life but by doing some homework you can be well prepared.
Educate Yourself
Due to the size of the financial transaction you will be making, its important that you do your research and know what you are getting into. How much money are you looking to borrow? Is that an amount you can comfortably afford? There are many different payment terms when it comes to a mortgage, do you want to pay on a monthly basis or would you prefer to pay every two weeks when you get paid or some other frequency? The more often you pay, the faster you will pay down your mortgage.
Be Ready
Depending on the housing climate where you live, a house may sell very quickly. When a home is priced correctly, they don’t tend to stay on the market very long. For this reason, it is a good idea to visit your lender or any mortgage lenders and get pre-approved for a mortgage. By doing this, your Realtor will take you more seriously and any offer you may put in on a house will be seen in a more favorable light.
Shop Around
Don’t agree to get a mortgage with the first person you talk to. You likely wouldn’t buy the first car you see at a dealership and that purchase is typically significantly less in terms of price and time than a mortgage. Talk to a few lenders before you select the one you want to work with. Ask them any questions you have. If you are not sure what you should be asking them, talk to people you know who have recently bought houses and see what advice they have for you.
Pick a Comfortable Rate
A mortgage can have one of two rates. The first is a fixed rate where your interest rate and a result, your payment, will stay the same over the life of your mortgage. The second is a variable rate that is typically tied to the prime lending rate. If that rate changes, you interest rate will go up or down depending on which way that went. Your comfort level is going to determine which method you will choose, whether you are more concerned about your rate changing or what you expect the rates to do in the next while.
Ask Questions
Never be afraid to ask questions of your lender. You need to be comfortable with the contract that you are signing. If you think you are going to want to change your payments in a year or two, do not be afraid to ask what the process is. Are you expecting a significant amount of cash that you want to put towards a mortgage but aren’t sure what the best way to do it is, it’s important to ask.