• David Tarry MBA

Shopping For The Best Mortgage

Finding the perfect home is a huge task, but shopping for the best mortgage can be even more tedious. With so many lenders promising low rates, cashback, fixed rate, tracker rate, 2 year, 5 year, 10 year rates, it’s often difficult to know which way to turn. Luckily, there are several steps that you can take to find the right lender for your individual needs.

Assess Your Situation

Do you know what your credit score is? If not, you should and you can find out where you stand using CheckMyFile - just follow this link to get access in just a few minutes.

Most lenders rely on this to determine both your creditworthiness and interest rates. If you have excellent credit, you can probably work with almost any lender. If you have severe blemishes in your financial past, however, finding the right lender may require a little more footwork.

How much money do you have for a deposit? If you are on a tight budget, you will need to choose a lender that can help to get you into a home with a minimal deposit. Knowing where you stand will give you a good idea as to which lender you need to work with.

Compare Rates

As is the case with anything in life, it pays to shop wisely. Because a home is the largest investment that most people will ever make, it stands to reason that comparison shopping is a must. As you speak with various lenders, ask about their rates, loan terms, payment options, underwriting criteria and deposit requirements.

Interest rates change often, which means locking in your rates when they are low can save you a bundle of money. Because there are so many lenders competing for your business, you will be greeted with plenty of appealing offers, including low rates, closing costs and down payment requirements, but be careful about the fees they’re charging too – they can make a huge difference to the overall cost.

Demand The Best

You are the one buying the home, so you should be the one to choose the length of your loan term. With the exception of a situation where payments are simply unaffordable, it’s up to you to decide how long you want to pay for a house. Many homebuyers prefer a longer loan term to keep the payments low, while others want to get the home paid for as quickly as possible with a shorter term. It’s important to keep in mind that the longer you pay for a home, the more money you will end up spending in interest.

It’s a good idea to talk to your lender about their willingness to accommodate your needs. If you’re in doubt about which lender to choose or are new to the area and need a little guidance, seek the help of a good mortgage broker. He/she knows the business and will be more than happy to assist you in making your dream of home ownership become a reality.

Hope that helps, take care,