Getting a great deal on your mortgage requires homework as it’s not as simple as shopping for a new TV. You can research online and compare rates, however only up to a point because your actual rate depends on your credit score and other factors such as whether you’re shopping for a single family home or a condo.
However, learning as much as possible can help you become more prepared and knowing what to expect can help you plan. If you’re part of the growing segment that think first before diving into the real estate market you’ve come to the right place because we have four great tips on how you to get a great deal on your mortgage.
When it comes to mortgages you actually have a lot of options. There are banks, building societies, credit unions and mortgage brokers. Most of these will also be proclaiming that they are “your best option” and have the best deals or options.
It is important to understand that these companies are bidding by using their rates to entice you into signing with them. Review which company offers the best option in terms of features and terms.
Once you know which lender you want to work with, it is better to act fast. Once you’ve studied your finances and you’re sure that you can afford the rate and mortgage, go for it and work with that lender. Some institutions change rates according to the market and dragging your feet can cause your rate to change.
Once you’ve positioned yourself with the best mortgage option, it’s time for some comparison check. It is very easy to do. You can do it online through lender’s websites or you can actually inquire and ask for quotations.
You can also visit Zillow because they provide information on lenders. You will need to input a series of information to access this information and it is easy to do. Once you’ve provided the needed information, lenders will contact you with their quotes.
Check with your bank and credit union too. They usually have preferred rates especially for their customers that is not visible online.
Lock your loan rate after the initial loan approval. Many borrowers do not like to lock their rates as they want to find a home to purchase first. However, a longer rate lock is more costly. For example, choosing a 30-day lock can result in a 4.875 percent rate and zero points, while a 60-day lock might cost 1 point (equal to 1 percent of the loan).
There is no perfect time to lock a loan. The borrower can always check with the loan processor to get an idea how long it will take for the loan go through underwriting.
If you hope to get the best mortgage rates possible, you’ll need to make sure that you are well-qualified. Applying for a loan is a big decision which is why it is better to be prepared before you start the whole process. Keeping these tips in mind can help you get the best deal on your mortgage when you’re ready to apply. Looking for more real estate tips like this? Learn more here.