Finding mortgage loan offers is easy; however, choosing the best loan without overpaying for the financing is difficult. Most homeowners concentrate only on the interest rate, if you do this you'll overlook other negotiable expenses like closing costs.
Here are tips to help you determine which loan offer is best for you.
Compare All Fees, Not Just Interest Rates
When shopping for a mortgage loan the Annual Percentage Rate is a helpful for comparing loan offers; however, it does not provide a breakdown of all costs associated with the loan. You want an accurate picture of all costs associated with the mortgage offers you consider; this breakdown of expenses is found on the Good Faith Estimate that lenders are required to provide you. Make sure you understand all of the fees on this estimate and ask your lender about any other fees like prepayment penalties that are not listed on the Good Faith Estimate. If the lender is hesitant to provide you this information or stalls, find another mortgage lender.
Shop Based on Your Circumstances
If you have special circumstances you may need to shop from lenders that specialize in mortgages suited for you. Examples of special circumstances include borrowers with poor credit or homeowners in need of jumbo mortgage loans. If you are a homeowner with special borrowing needs, consider using a mortgage broker to find loan offers tailored for your situation.
Customer Service is Important; However…
When you evaluate loan offers you should be mindful of the customer service you receive; however, base your decision on the mortgage terms and interest rates rather then the service. The reason for this is that mortgage lenders regularly buy and sell mortgage loans so there is no guarantee that the mortgage lender you finance your home with will be your lender in five years. If you take less favorable terms and conditions because you prefer to deal with a certain finance company you could be disappointed when that lender sells your mortgage to another lender.
Shop from a Variety of Mortgage Lenders
Shopping from a variety of mortgage lenders improves your chances of finding the best mortgage for your situation. A mortgage broker may be able to provide loan options you were not aware of that can help meet your financial goals. You should be careful when using a mortgage broker as it is easy to overpay for financing when you have to pay a hidden broker commission on top of your mortgage fees and closing costs. Learn more about your mortgage options including how to avoid common mistakes by registering for a free mortgage guidebook.
To get your free mortgage guidebook visit RefiAdvisor.com using the link below.
Louie Latour specializes in showing homeowners how to avoid common mortgage mistakes and predatory lenders. For a free copy of "Mortgage Refinancing: What You Need to Know," which teaches strategies to find the best mortgage and save thousands of dollars in the process, visit Refiadvisor.com.
Claim your free guidebook today at: http://www.refiadvisor.com
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