You see shopping guides for wedding plans, for house hunting, and finding the perfect car. You see them every week-end in the Sunday Supplements of your local newspapers. So, we of Palm State Mortgage thought you might enjoy a Mortgage Shopper’s Guide.
Palm State Mortgage has always maintained that mortgage seekers should “shop around” for the best mortgage rate. We want our borrowers to be inquisitive, well informed shoppers, so we do not mind revealing a few tips and details for your “Mortgage Shopper’s Guide.” These notes might help you avoid financial pitfalls later. For some basic background about mortgages in general, we suggest you ivestigate this source. If you are not even sure what type of loan you are shopping for, click here for more advice.
1. Check into the interest rate on every mortgage loan your are going to consider. Discover the current interest rate, and compare that to your offers. Are you getting the best possible interest rate from your lender?
When you are offered an interest rate on a loan, keep two criteria in mind: First you should know something about the “current market conditions”, when you apply for the loan. High market rates mean higher interest rates. Low market rates mean comparably lower interest rates.
Your second criteria is your own credit profile. The stronger your credit score is, the lower your interest rate will be. A tarnished credit score will force you to pay a higher interest rate. You are within your rights to ask the “why” behind the rates you are offered. At Palm State Mortgage we will explain every detail concerning the rates we offer. There is no penalty if you just ask a lender about lower rates.
2. Get A Lock!
You will want to inquire about the changes that might happen in your rate from the time of initial agreement until you close your deal. If the interest rate changes you might get yourself into an unexpected higher payment situation.
Sometimes lenders will allow you to “lock in” your interest rate until closing. There is a fee for this, and it will usually lock your rate for 30-60 days. Again, smart shoppers do not fear the questioning process. Educated loan shoppers will ask about a “lock in” policy concerning the interest rate.
3. Know Your Time Table
You will need to know, at least in general, how to plan your move as you vacate your old home for your new home. Be aware that many factors can change a closing timetable. A helpful lender can at least clue you into a general idea of how long it will take to close your deal.
4. Beware of Hidden Pricetags
Whereas they are not exactly hidden, you will have to pay closing costs. Among these you might find fees for Home Inspection, legal services and, of course, Title Transfer fees. These are just examples of closing expenses for you to anticipate.
At Palm State, we know you are justified in asking a lender for a list of these closing costs. You will be delighted to know that sometimes the seller will assist you in paying some of your closing costs. So feel free to ask your lender if the seller is will share the cost of closing fees.
5. Do Your Homework
As we have noted in previous blogs, lenders require that you to submit varying levels of documentation. Check back and review our blog concerning this aspect of mortgage shopping by clicking here. Be prepared to verify, in hard copy, your employment, your assets, your debt and credit history. We know the amount of paperwork can be staggering, but legally necessary. Do not feel interrogated or invaded. Some loans and rates require more verification than others.
Palm State Mortgage will provide you with a list of the documentation you will need for your best loan option. Any lender you “shop” should do the same in an to help you gain success when submitting your loan application.
This is just the tip of the shopper’s “ice berg.” Whether you are mortgage shopping in “Hometown,” America, or here in at our homebase in the Orlando area, the keys to the perfect mortgage quest are preparation and information. You can investigate more mortgage details by clicking here. This blog contains only five of our top tips in our mini-Mortgage Shopper’s Guide. We encourage you to turn this, and your local research, into a check list of questions you will ask of each mortgage lender in your shopping experience.
Thank you for reading our blog. We strive to provide you with useful information on your search for the perfect mortgage loan situation. Please feel free to share it by clicking one of our social network buttons below.
