Best Mortgage Advice? Shop Around!

You search and scour to find the perfect home, so why not find the ideal mortgage to go with it? Mortgages come in all different shapes and sizes—take the time to see what’s out there. Comparison shopping could potentially save you thousands of dollars over the life of the loan, helping you get more house for your money. Try this mortgage shopping strategy:

Compare lenders

It’s important to speak with several different mortgage lenders. You’ll likely get a variety of quotes, which can save you money now, as well as in the long run. Compare lender fees and interest rates to see how they stack up against each other.

Compare rates

Mortgage rates can vary significantly from day to day. It’s important to spend time shopping around and comparing rates. Finding the best mortgage will not only mean a lower monthly payment, but it also means putting your money toward more house instead of more interest.

Compare the total cost

At the end of the day, you’ll need to figure out how much you’re willing to pay for your mortgage—including closing costs and other fees. These costs will vary from lender to lender, so be sure to read the fine print and ask questions if you don’t understand what you’re paying for.

Find the right lender

Understanding where you’re borrowing from will help you navigate through the crowded mortgage field. Here are some options:

• Banks

  These lenders work for a specific financial institution and offer package loans for consideration by the bank’s underwriters.

• Credit unions

  Credit unions are member-owned, not-for-profit financial institutions that often offer better loan rates than their bank counterparts.

• Correspondent lenders

  A correspondent lender is a type of mortgage lender that funds home loans in their own name. After the loan closes, the loan is sold to a larger mortgage lender who then services the loan.

• Mortgage brokers

  A mortgage broker works with a variety of lenders as an intermediary, bringing borrowers and lenders together.

   

If you’re ready for a mortgage loan, now may be the best time to start your search. Look for a financial partner who can offer unique mortgage programs with competitive rates and fees.