Shop
Around for a Mortgage
If
you have decided to take the leap into home
ownership or you are interested in refinancing
your current mortgage,
one of the first things you will need to do is track down a mortgage.
I
honestly can’t tell you just how many mortgage
companies there are in the United States, but I can tell you this,
there are a lot of them.
Mortgage
companies also come in a few different forms. You might recognize one
as your local
bank, but there are also wholesale
lenders who use not only there own loan officers to originate
mortgages, they will also use mortgage
brokers. Than you have your retail lenders, who use only their own
employed loan officers.
Because
there are so many mortgage companies out there, the industry has become
highly competitive.
So
before you commit to the first lender you approach and start filling out
applications, look again, and consider shopping around. Like I said, the
mortgage industry is highly competitive, so let them fight over you.
You
don’t have to go crazy when shopping
for a lender. No more than five inquiries should be your limit. Talk
with them, find out what programs they have to offer, and at what rate.
Ask about closing
costs. Remember, closing costs should not exceed 5% of the total amount
of the loan at the very most. (This does not include the down payment).
By
shopping around, you will be able to get a feel for what is out there,
and whatever lender offers you the best deal to fit your needs and your
budget, should be your lender of choice.
The
down fall to speaking with one lender is, you are limiting yourself too
just their products and services, as well as their rates. How do you know
you can’t get a better deal somewhere else? Most likely you can.
Shop
around for a mortgage the way you would shop around for a car. Look at
a few of them at different dealerships, test drive them, discuss pricing
with the sales person, than once you and the selling party have come to
an agreement, make the purchase.
Buying
or refinancing
a home is not something you want to rush into. So take your time and educate
yourself. Talk to people within the industry, shop around, than make an
educated decision based on what best fits your needs.
What
a Broker Does
Using
a Mortgage Broker
Doing
Your Mortgage Homework
Don't
Let Bad Credit Stop You
First
Time Home Buying
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