Buying your own home isn’t anything cheap and chances are you’ll need a mortgage lender. And there are several ways to do it – and one enough convenient is looking for one online. But if you don’t do it rightly it can cost too much for you – and we have some tips to avoid it.
Check which options she offers
One 30-year fixed rate mortgage isn’t your only option. Some other options you can consider interesting are an Adjustable Rate Mortgage (ARM) or Interest-Only Mortgage – and they aren’t only ones. You can also study options with longer or shorter terms. Look for lenders with several and good options – options fitting with your needs. If one mortgage lender is trying to pushing you one particular type of loan and you don’t feel comfortable about it, go away.
Focus on “pre-approval” lends
When purchasing your house, some lenders can say you are “pre-qualified”, but it doesn’t mean you’ll really get that loan. “Pre-qualification” doesn’t mean too much thing – actually, it’s most closed to nothing. But, situation is different when your application is “pre-approved”. If your application is “pre-approved” means loan officer has checked your data about employer, credit card companies etc. So, they have more info needed to process and if you are “pre-qualified” so they are more likely to give you that loan.
Ask if your quote rate is really “locked in”
Interest rates are too much unstable, varying according to several market parameters every day. And, trying to make a deal with you, they can show you an interest rate, even knowing that won’t be the final rate when business is closed. So, when checking one mortgage lender is important to ask to “lock in” that rate for two or three months. One good mortgage lender will get to keep that rate and you won’t be surprised with it when closing your loan.
And if you got affordable options, have pre-approved loans and the lenders locked-in your rate, it’s time to compare all pros, cons and fees and choose the best option.