Mortgage Shopping Tips To Get The Right Mortgage

Are you mortgage shopping in order to purchase a new home? It could be one of the most complex financial decisions you’ll ever make. Here are some tips to make it easier.

Mortgage Shopping Tips

Shop for your loan. This is probably the most important advice you can take. Check online, and look at brokers, lenders, credit unions, government programs including city, county and state housing authorities. Also, consider seller financing. Shopping for your financing can save you a lot of money. It’s also important to understand the loan costs and fees and not look at the percentage rate only. Agreeing to the terms of a loan with higher fees, points, or interest rate means more profit for lenders and brokers.
Learn about loan options. There are many risks and benefits of a mortgage. Find out about the types of mortgages including fixed interest rates, interest-only payments, prepayment penalties and more. Take all of the features into consideration including the annual percentage rate and settlement costs.

Calculate your monthly payments. How much are you going to be paying next year, or in 5 years? Your lender can help you make these calculations. Keep track of different loans in a worksheet, and compare payments with the equity you will build. You may want to learn how to calculate your monthly payments so you can check the work of your loan officer.
Get advice. Ask trusted sources such as family, friends, and associates for referrals. Hire a real estate attorney to review your documents before signing anything.