If you've decided to purchase a home, it's likely that you've already spent some time browsing properties online, scouting neighborhoods and touring open houses. You're doing your due diligence because you want to find the home that best suits your unique needs. Unfortunately, many homebuyers don't use as much caution shopping for a mortgage.
According to a report from the Consumer Finance Protection Bureau, almost 50 percent of all buyers go with the first lender that they find. Whether this is because they already have a relationship with a particular bank, saw an ad for a great interest rate or got a recommendation from their neighbor's cousin, they're doing themselves a disservice by not shopping around.
This, after all, is one of the biggest purchases you'll likely make during your lifetime. Shouldn't your mortgage be great too?
Here are the top four reasons why you should take the time to shop your mortgage before signing on the dotted line.
No two mortgages are created equal. It's important that you understand all associated fees that come with getting a mortgage and closing on a home. When shopping for a mortgage, be sure to ask about:
- Titling Fees
- Processing Fees
A qualified lender will be able to help you estimate the closing costs and any associated fees. Compare these fees for the best rate.
Interest rates are the lowest they have been in decades. Do you know what the rate is right now? It is important to remember that your interest rate is directly correlated to your creditworthiness and how risky the bank perceives your loan to be. Thus the rate is not set in stone, and you should always consult a few mortgage lenders to get the best rate possible.
A variety of programs
By shopping around, you will learn about a variety of loan programs that may or may not suit your needs. Lenders will work hard to earn your business, and providing you with loan options that fit your specific financial needs is just one way that they will try to win your business.
Finally, not all mortgage lenders offer the kind of customer service that you expect. Is the lender returning your phone calls and emails promptly? Do you feel like the lender is knowledgeable enough to help guide you through the process? Are you comfortable communicating with the lender and sharing your personal information? These are all considerations you should make to ensure that you partner with a professional you trust.
Whether this is your first home or your latest investment property, taking the time to shop your mortgage can really pay off in the long run. Give us a call today to learn more about the mortgage process and how to secure the right loan for you.