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  • mortgage shopping

    Shopping for a mortgage is perhaps one of the most stressful and exciting times for a new home owner. Finding the perfect mortgage for you can seem daunting when there are so many options available to home buyers. It can seem overwhelming to know even where to begin. So here are some easy steps for finding the best deals when mortgage shopping and avoiding the common mistakes and pitfalls.

    Do Your Research!

    The first thing you need to be aware of when shopping for a mortgage is what the mortgage market is doing. Checking websites like www.mortgagenewsdaily.com will help you know if the market is rising, falling, or if there are any predicted changes that will happen in the near future. Knowing this information will help you know when to start applying for a mortgage, what to expect when you do apply for a mortgage, and may help you get a better deal if you know you should wait for the predicted changes or not.

    Research is important when you are planning for one of the biggest financial decisions you will ever make. Take some time to learn about the mortgage market and how it is fluctuating in your area. If a major financial crisis is being predicted, then wait to see how that pans out before buying your home. It is better to take a little time now and to wait to buy your home than to buy quickly and end up missing out on a better deal with your mortgage.

    However, shopping for the right mortgage could be an endless process, so when you find a rate that suits you perhaps forgo trying to find one that is marginally lower. The market is always changing so at some point you will have to decide that you have found something you like and will need to stick with it.

    Shopping For Mortgages Rates.

    Speaking of talking to professionals, make sure you get information from more than one source. Mortgage lenders are there to give you information, but they are also there to make a living. Just because they say they have the best deal, doesn’t necessarily make it true. So get out there and look at what is being offered by as many different companies as you can. This may seem exhausting and a bit like information overload, but it is vital to make sure you get the best you can out of your mortgage. This is why it is called “mortgage shopping”; you need to go to more than one place before you decide on what you want to buy.

    When you have found the best deal, makes sure you are also working with someone you trust. A mortgage lender is going to have a very important contract with you that will last years; it is, therefore, important that you are comfortable working with them. If you have any misgivings, then don’t ignore them. There may be another mortgage lender out there with the same deal, or who could match your deal, that you much prefer working with.

    Check Your Credit Rating.

    One of the biggest hindrances to getting a mortgage is bad credit rating. After all your mortgage shopping and research, you don’t want to be turned down at application time because you didn’t check your own credit rating. Going to AnnualCreditReport.com

    Avoid creating any new credit history during the mortgage process. Your credit history is being thoroughly investigated by the mortgage lender, so applying for new credit or closing an old credit account could potentially create issues with your credit rating report.

    Don’t Jump The Gun.

    The pre-approval process can seem like a hindrance when shopping for a mortgage. You may already have your eye on the house you want, and you are planning on apply directly for a mortgage as soon as you can. The best idea is to go through the pre-approval process with a mortgage lender to find out how much they would be willing to loan you. This means that you will be able to look at houses that are within your price range without worrying if you can afford them or not. Knowing what you can and cannot get before looking at houses is key to a smooth house purchase.

    During this process, you may find out that the lender is willing to loan you much more than you originally anticipated. Don’t get too excited by this and blow your budget. Have an idea before you go in for what you would like to borrow that is manageable for you and your income. If you get approved for less then move your expectations, but if you get approved for more than what you thought stick to what you originally intended and don’t get carried away. Loans need to be manageable, or they become a nightmare.

    Never Sign Something You Don’t Understand.

    At this point, you have been approved for a loan and are on the way to owning your own house. Congratulations! But now is not the time to get complacent. You will be required to sign documents that are going to change your life, so make sure you understand them! Read through them carefully and make sure it makes sense to you. Take the time to understand your payment obligations, the upfront payments, and the loan terms. Don’t sign up to a loan without being sure you know what it is you are signing.

    Shopping for a mortgage rate that suits you is always going to be a big task, but not one that has to be overly stressful. By avoiding these common pitfalls, you could be well on the way to moving into your new house. Remember to have fun while you shop for a mortgage; owning a new house is something to be excited about.