If you’re like most people, a home is the biggest purchase you’ll ever make — and it typically requires a mortgage loan.
So what do you need to know about shopping for the best deal on a mortgage?
How to Shop for the Best Mortgage
It’s always a good idea to talk to multiple lenders before you settle on one. That helps ensure that you’re getting the best possible terms.
Remember that you can negotiate with lenders, too, and you may have more leeway than you think you do.
Home loans are available from several types of lenders, including:
- Credit unions
- Commercial banks
- Mortgage companies
You can also get a loan through a mortgage broker — but when you do this, the money isn’t actually coming from the broker. The broker simply arranges the transaction.
You can “comparison shop” between several types of lenders. When you do, it’s a good idea to ask several questions, such as:
- What are your current mortgage interest rates? Are those rates fixed or adjustable? What’s the loan’s annual percentage rate, or APR?
- Will I have to pay points? (Points are fees you pay to the lender or broker that will often lower your interest rate, thereby lowering your monthly payments.) You should also ask for the points in dollar value so you’ll know exactly how much the lender will be charging you.
- What are your loan origination or underwriting fees? What are your broker fees, transaction fees and closing costs? You can always ask for an explanation of any fees that you don’t understand.
- How much will I need to come up with for a down payment?
Are You Buying a Home in Williamson County?
If you’re buying a home in Williamson County, we can help you find one that’s just right for your needs.
Call us at 615-473-5973 or get in touch with us online today.
