We all know that home mortgages are a major decision and one that will affect our lives for years to come. Whether you’re looking for your first home mortgage or trying to refinance an existing home mortgage, there are some things about home mortgages you should be aware of. Below we’ll discuss 3 tips on how to get a better deal when it comes to this.
One:
Shop around: It’s important to research different lenders and compare their rates before taking out a mortgage with anyone. This is especially true if you have been pre-approved elsewhere or if you were recently refused credit elsewhere because they saw something in your credit score that they didn’t like.
In these cases, the lender has already made up their mind about your mortgage application and it’s in your best interest to go with a different lender. Even if you were pre-approved, ask for a better rate or another offer from that same lender before going elsewhere because they may be able to beat their original mortgage deal.
Two:
Don’t settle on the first mortgage offer you get: While it is important not to shop around too much without getting some mortgages at least, never agree upon the first mortgage offer given unless of course, it comes with an extremely low-interest rate.
Otherwise, make sure to look over any mortgages offered by looking closely at all fees involved as well as closing costs including title insurance premiums. And don’t forget about points since these will lower mortgage closing costs.
Three:
Get mortgage pre-approval from a lender before you shop for your home: Getting mortgage pre-approval is important because it will help keep the home buying process smooth and efficient when looking at homes that meet criteria in terms of location, price range, etc.
In other words, getting mortgage pre-approval helps to ensure there are no unpleasant surprises later on in terms of how much money you can qualify for as well as interest rates so if a seller says they have received an offer already but only with a higher down payment or monthly house payments than what you had expected which would mean going over budget then this could create problems. So make sure to get mortgage approval first before trying to buy a home.
Conclusion:
Home mortgage pre-approval is a good idea and home mortgages can be complicated so it’s best to get home mortgage advice from someone who knows the ins and outs of home loans.