January 18th, 2011
Buying a home, and getting a mortgage, is probably the biggest financial decision you’ll ever make. Shopping for a mortgage isn’t like shopping for car insurance or buying something at the mall. It’s a totally different experience. Therefore, it’s best if you learn from other mortgage shoppers’ common mistakes so you can avoid making them yourself.
Calling and getting a quick rate quote. Unfortunately, if you do this, you’ll just be wasting your time. You need to find a lender who asks questions, so he really understands your particular financial situation. This way the lender can find a mortgage solution that’s right for you.
Comparing apples to oranges. You may think you can call a few lenders over a couple days and get some quotes. The process just doesn’t work this way. The rates and costs are always fluctuating, so the quote you may get is only good for that day until you lock the rates in. So you can’t truly compare quotes unless you get them all on the same day within an hour or two of each other.
Getting an estimate without providing all the facts about your financial situation. All the lenders you talk to need to have all of the same information ( your credit score, down payment amount, loan size, type of property, etc.) in order to analyze your situation and give you an accurate quote.
Working with a lender you don’t trust. You may encounter lenders who promise the “best deal.” Unfortunately, if it seems too good to be true, then it probably is. You should always work with a reputable mortgage broker. Ask family members, friends or co-workers for recommendations of lenders they’ve worked with. Also check out the lender’s client testimonials.
Everyone wants the best deal, because no one likes to overpay. Therefore, by following these tips, you’ll avoid making costly mistakes when looking for the right mortgage for your financial situation.READ MORE