Just as you have a lot to consider for your new home, you also have much to think about for your loan. The current financial climate has proven beneficial for buyers, and it’s expected that the market will continue to show good favor in the future as long as the Federal Reserve doesn’t bump up interest rates. No matter the rates or the housing market, Wyndham Capital Mortgage recommends the expert approach when you compare your mortgage offer.
Take Your Realtor’s Recommendation With Caution
Once you’re ready to scoop up a home, your real estate agent is likely to give you a list of preferred lenders. Before you narrow your options down, know that your agent could be more focused on closing a deal and less on making sure you get a fair mortgage. This isn’t to say your agent is out to take advantage of you, just that the two of you could have different priorities. Ease the process (and any concerns you might have) by performing a mortgage comparison with local and big-name lenders.
Go the Extra Mile
Rather than focus on just the interest rate and your monthly payment, dig deeper into the assorted factors that make up your loan offer. Specifically, you’ll want to ask lenders if the mortgage rates they provide are the lowest for the day or the week, and if that rate is adjustable or fixed. You should also check the points of your loan, which are the fees you pay for the loan. In most cases, the more points you pay, the lower your rate. Finally, make yourself aware of each fee included on your offer. Common fees include underwriting fees, loan origination fees, closing costs and broker fees.
Think About How Long You’ll Remain in Your Home
As you’re comparing adjustable-rate mortgages and fixed-rate mortgages, think about how long you plan on staying in your home. If you know you’ll only be in your home for a few years, you’re likely to be better off with an adjustable-rate mortgage, mainly because of the initial low interest rates. While fixed-rate mortgages often come with higher monthly payments, they have some of the lowest interest rates, which often result in paying a smaller amount over the life of your loan. Another advantage of fixed-rate mortgages is that you can build up equity in your home faster than you would with an adjustable-rate mortgage.
Consider Your Credit Score
Should you find you have only one mortgage offer or a few more to compare, the reason might be you have a low credit score. Lenders may learn your credit score before they learn your name, and with good reason. The lower your credit score and the less responsible you seem to be with your credit, the less likely you are to be approved for a mortgage. Beef up your comparison options by beefing up your credit score. Improving your score also does wonders for your interest rates.
See if Lenders Would Be Willing to Waive or Reduce Fees.
Don’t hesitate to ask if lenders could lower or eliminate fees on your mortgage offers. If they can’t, ask if you can get a lower rate. Once you’ve reached an agreement, compare the new offer with the old one to see that your lender didn’t lower one fee only to raise another, or that your rate was lowered while your points were raised. There’s absolutely no harm in asking for a deal whenever the opportunity presents itself.
A mortgage comparison can be time consuming, but you have to remember you’re buying a home, not a cup of coffee. Do your homework, consider your budget and think of the long-term benefits while reaching a final conclusion. Today is the perfect day to compare your rate quotes, let us help by giving you a free rate quote!