Your new home purchase is one of the largest expenses you will ever have. There are many buyers who spend weeks finding the perfect property but only a few minutes on their mortgage. The type of loan you take can impact your life long after your purchase is complete. It is important that you fully understand exactly what you are getting into before committing to anything. Regardless of your application profile you most likely have more options than you realize. By exhausting all of these options you can be at ease with the mortgage you select. This is your transaction and you need to be comfortable in every aspect. Before committing to a mortgage, here are a few items you need to review.
Commitment to Closing. The single most important factor in choosing a lender is their commitment to closing. You need to be confident that they really want to work with you. You can get an idea of their commitment by how they reach out to you when you are just shopping around. If they truly feel they can close your loan and want to work with you they will contact you multiple times. This is the type of communication you want once the process is started. You need to feel comfortable that you will be given updates and kept in the loop every step of the way.<br>
Rate and Terms. One of the biggest change to the mortgage industry is the transparency in which the fees, rates and terms are provided. Before you get too far in the process you are given a list of fees and terms that have to match with what you receive at the closing. This is done to eliminate any surprises as you get further along in the process. Before you get too far you need to be comfortable with your rate and terms. Interest rates are still near all-time lows. The problem is that they are a moving target and change daily. Instead of trying to time the rates perfectly go with a rate you are comfortable with. You may not lock in the lowest possible rate but you can avoid the risk of having them shoot up overnight. The same is the case with the term you take. Most mortgages are for a thirty year fixed term. A short term adjustable may save you money for the first few years but you need to know what happens after the adjustment period ends.<br>
Fees. The bottom line is always important. Every buyer wants to get the best terms and lowest fees for their mortgage. However like anything else you get what you pay for. There are times when paying slightly higher fees to go with a more qualified professional makes more sense. If you don’t close nothing else matters. There are brokers or lenders that will promise the sun moon and stars but end up not being able to deliver. Fees are important but you want to be comfortable that you will close regardless of who you work with.
Never be afraid to ask questions if you are uncomfortable with anything in your mortgage process. You may only get the chance to close a small handful or properties in your life. You don’t have to have any regrets after you close.