Do you know how to find the best "deal" on a mortgage?
mistakes that cost them money and a little knowledge and planning could save you big on your mortgage!
First, let's think about your homeownership plans and goals.
- What do you want your monthly payment to be?
- How long do you plan to live in the house?
- How much money do you have for a down payment?
- How much do you have to pay closing costs?
- Do you plan to remodel or gain equity quickly to refinance in under 5 years?
Explaining your plan to a mortgage professional will allow them to best match you with a program that fits your needs. Finding the right program is the primary way to get the best deal on a mortgage. Interest rates can be the number one expense in home loan! You may want to learn more about what affects your interest rate.
Other things you can ask to compare mortgages and save money are:
- If I increase my credit score, is there a better program for me?
- Is there a rate lock or rate guarantee program?
- Is there a way to remove mortgage insurance (if applied) without waiting a certain time period?
- If I put down more money is there a better option?
Other areas to save money by shopping around:
- Homeowners Insurance - This can be all over the board and depends on your credit score and if you are bundling other insurances.
- Inspection Fees - You want to know base charges, trip charges and add-on charges (like Radon or Lead Paint testing) upfront.
- Title Insurance - though this doesn't seem to vary by much by Title Co. in MN.
You can ask for discounts but many of them come with a price. Lenders have a bottom line and where you save in one area, you may sacrifice in another. For example, a "warehouse lender" may seem like their rates or fees are lower but you don't have the personal service because they deal in volume.
Saving $500 in fees may not be worth the lack of communication and delays or worse, not getting to closing at all.
Have more questions about the mortgage process? Call me and I will help you find some of the best lenders to help you navigate the process!
See other sources like Bankrate if you like to research.