Skip to main content

4 Steps To Shopping For A Mortgage



Shopping for a Better Mortgage

Today let us discuss one of the most important topics in shopping for a mortgage experience.  If you are putting efforts to do research before buying a new car, a television, a mobile phone or in something as simple as shoes, we suggest you put even more effort to shop for a mortgage. When it comes to the mortgage you need to make sure that you have the best one according to your needs. So below are a few steps to shop for the best mortgage deals.

Marking Your Goals

Identifying your goals would be the best bet when you are opting to buy a new house or planning to refinance your existing home. Ask yourself, how long are you planning to stay in the house? Are you planning to pay off the mortgage and build equity? Or are you refinancing to get a lower interest rate? These questions will help you identify your goals and help you select the loan options accordingly.

Selecting Tenure and Type of Rate

If you are looking to buy a new home or refinance your existing mortgage it is very important to know which tenure you need to select. You might get options starting from 5 years to 30 years, most commonly used are 15 years and 30 years. The longer the tenure the interest rates are higher. You might also need to determine whether you need an adjustable-rate or a fixed one

Selecting the Lending Institution

Once you finalize your goals with the selection of right tenure and the type of rate, you might want to select the right financial institution to get this loan done. You have 3 options to select –
A mortgage broker, a bank or a credit union. A mortgage broker might give you flexibility on the loans because they are tied up to many lenders and could help you find the best match to your criteria.
A bank could be a good option as well especially when you have a good relationship with one.
A credit union might give you additional benefits in terms of special perks like low-interest rates and lower fees.

Asking Questions

While you are in the process of selecting the best financial institution for your mortgage loan or a refinance it is advisable to ask as many questions as possible to the loan officer. You might want to know how much their underwriting, origination or servicing fees are so that you can shop for the best one and save money.
check if they are charging any points. If they are you might want to understand the terms for the same and see if it is beneficial for you. Ask about would be the interest rate. Determine how much you are going to pay for the tenure of the loan. Ask your loan officer is if there are any pre-payment penalties attached to your loan.
Ask if any other requirement like – kind of documents they would require, your assets, liabilities, your tax returns, credit score to qualify,  down payment if you are buying a new home, income documents, your work history, etc. Asking about these would not only give you a better understanding of shopping for the mortgage but also anticipate what documents to be prepared with.
It is very important that before you finalize on your mortgage you may want to make sure to shop as it could help you save a lot of money in the long run.

Call Us On (800)-756-0809 
Or
Select from the Below Options to Get a Free Quote.

Compare Your Quotes
Refinance Your Home
Buy a New Home
Home Equity Loan
838 E 27th St, Houston, TX 77009, USA

Comments

Post a Comment

Popular posts from this blog

What is an Appraisal Contingency? — Best Guide for Homebuyers

  About Appraisal Contingency If a home is appraised for less than the purchase price included in the contract then there is a provision that is included in the purchase contract allowing homebuyers to back out of their contract this is termed as an  appraisal contingency  clause. Buyers who use financing to buy a house or are  buying homes  in areas where prices are volatile commonly use Appraisal contingencies. How do Appraisal Contingencies work? Purchase offers have appraisal contingencies inserted into them to notify the seller that the buyer intends to have the property appraised as part of their purchase for the financing process. If th e  property doesn’t appraise for the amount the buyer offered to pay then this contingency allows them the option of backing out of the contract without losing their earnest money deposit or facing other penalties. During an appraisal, a licensed professional is hired by the homebuyer to examine the property and evalu...
Post a Comment
Read more

Public Feedback Requested By CFPB

  The Home Mortgage Disclosure Act underwent certain changes and to evaluate whether it is meeting the stated goals of detecting discrimination in mortgage lending the  Consumer Financial Protection Bureau  is seeking comments. The CFPB requests for assessment of the mortgage disclosure law and checks if it meets the objectives of the  Dodd-Frank Act . To abolish discrimination in mortgage lending in 1975 the Congress enacted . The bureau said the request comes after an August report found that mortgage lenders as compared to white applicants were charging higher interest rates and denying credit to Black and Hispanic applicants. The   bureau said that with this evaluation the CFPB will be able to maintain a fair, competitive, and non-discriminatory mortgage market. They added that the assessment is an opportunity for the Bureau to get an idea if the earlier HMDA rulemakings have improved upon the data collected, thereby reducing loans on financial institutions,...
Post a Comment
Read more

What is Fannie Mae and Freddie Mac?

Understanding  Fannie Mae  And  Freddie Mac What is Fannie Mae and Freddie Mac? Fannie Mae or FNMA  is a nickname for Federal National Mortgage Association. It was established in 1938. It is a Government-sponsored Enterprise (GSE). In 1968, Fannie Mae ceased to exist as a government entity and became quasi-governmental, federally charted corporation to buy mortgages other than those insured by the Federal Housing Administration, otherwise known as FHA. Freddie Mac or FHLMC  is a nickname for Federal Home Loan Mortgage Corporation. Freddie Mac is also a government-sponsored enterprise (GSE) which was brought into existence in the year 1970 by the Congress. It provides competition to Fannie Mae and provides funds availability in the secondary mortgage market. What is Fannie Mae's and Freddie Mac's Role? Fannie Mae’s purpose is to create a secondary market for the purchase and sale of mortgages.  The secondary mortgage market ...
Post a Comment
Read more

Ultimate Guide About Lease Option With Its Pros And Cons

  About Lease Options When you are looking to buy a home there are a lot of things that a buyer needs to be prepared with like a good credit score, down payment, and commitment to ownership. However, what if you don’t have a  credit score  that could qualify you for a mortgage? Or what if you don’t have enough money for the down payment to  purchase the property ? There is a way you can prepare to buy that home through the lease option. In this post, we will understand what is a lease option and how it works. What Is A Lease Option in Real Estate? A lease option is an agreement or a contract through which a tenant can purchase a property in the future based on today’s market price once the lease ends. A lease with the option to buy also gives the tenant / potential buyer time to build credit and save money for the down payment to buy the property. Once you enter into a lease option, it prevents the seller to accept any future orders from other buyers. A lease option ...
Post a Comment
Read more