Looking Beyond the Interest Rate and Finding the Best Broker for You
Buying a home is a major decision, and one that involves many smaller yet still important decisions along the way. Having the right professionals to help guide you through the process can make all the difference between getting the right loan on the right terms, and getting a loan that you’ll want to refinance your way out of as soon as possible.
But if you’re new to the home-buying process or have been out of the loop for a while, finding the best mortgage broker for you may seem like a secondary or even unnecessary concern. It can be very tempting to focus on the more exciting aspects of buying your new home, or to think of all mortgage brokers as essentially being the same.
This type of thinking can cost you serious money. The right mortgage broker will guide you through the process helping you get the best possible mortgage deal for you, and not the highest possible commission for themselves. Here are a few tips to help you find the best mortgage lender.
Take Care of Yourself First
Being able to negotiate the best possible deal for yourself begins with getting your own credit score in the strongest possible condition. There are many people that cannot even qualify for a mortgage. There are many others that can qualify, but because of their poor credit history are stuck working with whomever is willing to work with them, and are stuck with whatever interest rates lenders are willing to give them.
Conversely, those with excellent credit scores are in a position to be selective regarding who they work with and can negotiate better interest rates among competitive lenders. Getting your credit score in shape is simple, if a bit time consuming. Make sure that all the credit reports available to lenders are accurate and up to date. Out of date or incorrect information can cost you considerably in terms of a higher interest rate over the course of a mortgage.
Understand the Process and Your Options
An uneducated buyer is far more in jeopardy than an educated buyer. For every excellent mortgage broker working hard on behalf of their clients to get them the best possible rate and terms, there are other brokers that are more focused on their commission and profitability. Understanding what your options are can help a great deal when it comes to speaking with potential brokers.
Knowing what questions to ask a potential mortgage broker about your various loan options, interest rates, APR calculation, the costs and fees associated with the various lending options, the time it will take to close and any guarantees you can get regarding on time closing, and what may seem like a million other potentialities, could be what gets you the best loan on the best terms.
Finding the Right Mortgage for You
In a perfect world or with a perfect credit score, the best mortgage brokers would be fighting for your business among themselves. If, like most of us, your credit score is maybe a little less than perfect, then arming yourself with accurate credit reports that put you in the best possible light as a buyer.
Understanding the lending process and the best questions to ask prospective mortgage brokers makes the difference between getting the best mortgage and a mortgage you may not be happy with.
