Saving Money: Tips For Finding the Right Mortgage

Written by Posted On Saturday, 18 July 2015 07:40

You have finally found the home of your dreams. However, now you need to assess your finances and come up with the funds for a loan. Finding a mortgage that’s right for you and can save you money can be achieved with the following tips.

Check Your Credit Score

Nearly half of the home buyers across the U.S. fail to take the time to shop around for the best rates when it comes to their mortgage. This mistake can cost you significantly over the course of the loan. Even if you’re hoping to make being a homeowner a realty, you need to begin by getting your finances in place before you begin the home purchasing process.Procuring an excellent credit score affords you a number of benefits that includes lower interest rates and better loan terms. Since it can take time to fix mistakes, you should probably start this task at least a year in advance of your search. Invitation Homes is a leader when it comes to home rentals. They provide quality homes to qualified individuals. Until you’ve had time to assess your credit score and clear up any blemishes, you can still enjoy the comforts of home.

Remain Focused on Affordability

There are a number of steps you should follow when it comes to the home buying process. You should also get your financing in order before you find a home. This allows you to know how much home you can afford including the other factors such as real estate taxes, closing costs, general upkeep, furniture and insurance. You’ll find an assortment of online calculators that can give you ballpark estimates.

Begin Shopping Online

The latest technological advances offer new avenues in shopping for a home. From social media outlets such as Facebook and Twitter to the Internet and smartphone apps, you can walk through a number of listings without ever setting foot in them. The Internet also gives you an edge when it’s time to shop for a mortgage. You can comparison shop by interviewing lenders, banks and mortgage companies on the going rate, points and terms available.

Choose Four Lenders with the Lowest Annual Percentage Rates

Most buyers in search of a home select a traditional fixed-rate or 30-year type of loan. However, there are other loan structures that may be most beneficial to you, so you need to hear the lender out on what they offer. You also want to take into consideration the number of years you’re looking to stay in the home. Hybrids and Adjustable rate mortgages may allow you to save substantially on your monthly payments. When taking into consideration the various terms, makes sure assessing everything such as the mortgage product expenses, points and closing costs.

Don’t Be Afraid to Negotiate

This is your loan, and you want to secure terms that will work for you and save you money. You can do this by playing one lending institution against the other mortgage lender. Keep a spreadsheet of the competitions rates, asking them to compare terms and verify their fees. If one offers a 5 percent rate, you can ask that lender if they will match a lower rate that was offered by a competing lender. Say one charges $750 to process the loan, you can look for someone that doesn’t charge for this service. Once you’ve found the rate and processing fees that you like, get the figures in writing. You should also see if they can lock in the rates, and the number of days that they are willing to standing by those figures.

Pre-approval Letter

Real estate agents typically ask buyers to get a pre-approval letter before they begin the home shopping process. This means that you’re on track to the financing process, and you have an overall picture of how much you want to spend. It can also help you when it comes to the negotiation process, especially when it comes to mutual offers on a dwelling. If you’re already approved and ready to start the loan process, you could have an advantage over someone who hasn’t even started.

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Ashley Mills

This is Ashley a blogger and independent freelance journalist. Working as an independent media consultant since 2006. I've contributed a lot of news articles, ideas, inventions and more on various online weblogs.

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