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6 Insider Tips On How to Get the Best Deal on a Mortgage
When purchasing a home you actually have several big decisions to make aside from finding the right home. One of those major factors is getting the best deal for your mortgage. There are a ton of lenders as well as lender programs out there, so choosing the right one can seem a little daunting. However, if you are currently experiencing the dilemma of searching for the right program, we have some insightful tidbits to alleviate the process. Check out our 6 Insider Tips On How to Get the Best Deal on a Mortgage.
Get an Early Jump on the Process
Don’t wait until you find the perfect home to get pre-approved. In a hot market such as Philadelphia’s, homes move fast. By the time you have all of your ducks lined-up in a row it could be too late. It’s also a good idea to start early to give yourself a chance to shop.
Know Your Credit Score
It is not uncommon for folks to start the buying process without knowing their credit score. Knowing your credit score affects your buying power as well as your interest rate. If you have stellar credit, you’ll have more leverage in your demands than those with less than perfect credit. However, whether you’re a 850 or 650, knowing your score helps to choose the right program right away.
Looking for the Right Home in Philadelphia? Here are a Few Great Options!
Don’t fall into the pitfall of calling a lender and have them drill you with all questions. Remember you’re interviewing them just as much as they are interviewing you. So don’t be afraid to ask questions and feel them out. Working with an experienced and knowledgable lender will help to ensure the best deal as well as save you a ton of cash
Compare Apples to Apples
There are a ton of loan programs out there. You don’t have to know them all but when comparing, make sure you’re checking apples with apples. Don’t make the mistake of comparing a 30 year fixed with a 15 year adjustable. Make sure that you’re loan officer is able to clearly explain the difference in each program.
Are You Really Staying Long Term?
Depending on how long you plan to stay in your new home is a key thing to know. If you happen to plan to sell and purchase another home in a relatively short period of time you may not want to put much down. However, if you plan on staying a long time or even the full 30 year term, you may want to consider putting a large downpayment upfront.
Don’t be Afraid to Ask Questions & Read the Fine Print
It is always a great idea to do research ahead of time and get acclimated to key words such as APR, adjustable arm, and prepayment penalty. You may unknowingly sign a contract for a mortgage with the intent to pay more than the minimum payment to eventually pay the home off early. However, if that particular program has a prepayment penalty, you’ll be subject of hefty penalties for paying the home off early.
Talk To Your Lender About Your Situation and Goals
Having a game plan is important. Whether you’re looking for a permanent home, an investment property, or a flip, laying out your goals will help your mortgage professional to find you the best program. It’s key to havean in-depth conversation with your mortgage professional. Establish where you are and where you want to be in terms of ownership.