Getting a mortgage on a home is by far one of the most important decisions anyone can make in their lifetime simply because it’s such a huge time commitment and investment in a property. Find the perfect home loan is a lot easier said than done, and there are always going to be so many tips and pointers to consider when you and your family are looking for that home loan of your dreams.

We’re lucky to have teamed up with Accounting Firms Des Moines who help homeowners with their finances as they come up to these pinnacle decisions, and we know that by going through these tips and pointers you’ll be much more prepared to get the perfect mortgage for your new home and also make sure that you’re getting the best value out of your home loan as well.

So here are 6 important things to consider when getting a mortgage!

Mortgages are not commodities

If you go into your home loan shopping with the rate is all that matters in your mind then you are going to end up being very disappointed. What you need to focus more on is getting yourself a partner that you trust who can help you get through the convoluted process of these transactions and give you the type of advice and support that will help you through the process first and foremost.

Online is not the place to do this kind of transaction

Putting it simply, don’t purchase a home loan on the internet. There are way too many variables that come into play when it comes to these kinds of loan processes. You should always utilize the internet for your own research, like we’re sure you’re doing right now, but when it comes to finding the right firm you should start talking to people in person to get the perfect deal.

The two types of mortgage lenders

They are the ones you’ve heard of and the ones you haven’t heard of, and you may notice that more well-known lenders are going to give you higher quotes. This could be because they provide a lot more services and have higher cost structures, but just because it’s a higher quote doesn’t mean you shouldn’t disregard these firms.

Avoid interest-only loans

There are some exceptions, including if you are planning on moving into your new home very soon or the loan you want is a short-term bridge loan. But the point is that if you are only paying interest then you aren’t necessarily building up any kind of ownership or equity in your home, which is part of the whole reason why people get mortgages in the first place.

The mortgage industry is unregulated 

It’s important to consider the facts that mortgage brokers are a lot different than banks, and they simply just don’t play by the same rules. People have heard of things like bait and switch tactics in which people are promised one thing and then end up with another offer when they get to a closing table. The point is that you never have to accept any of these last minute changes to your mortgage, and sometimes it may be inconvenient but your best option is to walk away.

There are certain warning signs you should be aware of, even after you’ve found the lender you’d like to work with, including the following:

• - If the loan representative is encouraging your to borrow more than you need
• - If the loan representative entices you to overstate your income
• - Loan rep trying to get your to agree to payments you can’t afford
• - If the loan rep asks you to sign blank forms
• - If the loan rep fails to provide you with any kind of mandated disclosure documents

Generally avoid paying mortgage insurance

Although there are many types of loans that will require you to get mortgage insurance, there are others that will waive this type of insurance if you happen to have a low amount of debt-to-home equity ratio when you are taking out your loan. But it’s important to understand that for the most part mortgage insurance doesn't actually protect you, but in fact protects mortgage lenders.