3 Mortgage Tips
These tips on mortgages will help make the home buying experience more pleasant for you.
1. Get Pre-Approved
If you were selling a home or something of more or equal value, would you want to sell it to someone who may not be able to pay for it? Of course not! Guess what? The person/s you'll be buying your home from feel the same way.
If you're interested in a seller's house and you want them to take it off the market for a period of usually a month waiting to close the deal. You better be pre approved. If the deal fails because you can't get a loan, the seller has lost a lot of selling time and possibly another potential buyer who WAS qualified.
Everyone knows money talks. It's no secret that "cash" buyers may get a better deal or discount than other buyers because the seller knows their money is good. Becoming pre-approved automatically makes you a "cash" buyer in the eyes of the seller. Becoming pre approved assures the seller you can close the deal.
You can get pre approved by having a mortgage lender review your financial picture and give you a written pre-approval. This is usually done at no charge.
2. Shop Around
There's a huge variety of mortgages, rates, term and conditions to choose from. You may think it's a no brainer to go with the lowest interest rate, but be warned. The published interest rate is only the beginning. Be sure to check out the complete story of fees, terms, closing costs, points, discounts and more associated with a mortgage. Charges vary from each individual lender and may change for you depending on your credit history, employment history, income, assets, and other factors.
Learn more about Making an offer with a Pre-Approval
The way to get the best deal is to shop around.
3. Shop On-Line
Lately, the norm seems to be online mortgage applications. People are doing this even after the bank crisis and recession of 2008-2012. People still think it's ideal because they never have to leave their home or office but please think again. You'll fare better if you sit down face to face with a lender locally. You'll want someone you can find and contact when/if problems arise.
However, DO shop the internet for rate and fee information before initially setting down with a lender. That way, you'll be prepared when you do.