Make Mortgage Lenders Compete And Get The Best For Your Money

March 14, 2009 by  
Filed under On Your Mortgage

Taking your first step on the property ladder should be a well researched and informed one. This step will pave your future finances whether it is easy payable monthly instalments and a great investment or a nightmare that is that is costing you deep in the pocket.

When approaching a mortgage lender remember that hey are only too happy to do business with you and will also be willing to negotiate. It is a good idea to inform them that you are comparing prices and will take the best offer, they not only expect this but appreciate your honesty so they can strike up a potential deal.

Every little saving helps so if you can create a kind of bargaining situation you could end up with a very nice rate. The mortgage lender might be prepared to knock that tiny bit off the rate but it translates into huge savings over the years.

The more you know about the mortgage process the better deal you can obtain helping you save money. Learn everything there is to know about the subject and show that you mean business. There are 2 main types of loan being the Government and Conventional loans. Read up on them and select the most appropriate loan for you.

You will need to be in possession of your credit report. It is worth bearing in mind that these report often contain errors which could potentially cost you more for your loan and even be rejected from getting the loan completely. Carefully check through the report for errors and have them corrected.

Prior to your meeting with the mortgage lender run through your plans for the next few years and how that will impact on your payments. How much can you realistically pay per month? Do you have a suitably and steady income to maintain the payments and can you afford the down payment? Another important aspect that will have to be answered as accurately as possible is whether you intend to stay in the house for the foreseeable future or if you intend to move within a few years. In this case you should be asking about the assumability of the loan.

Keep an eye on mortgage rates and their oscillations, the more you know about figures and trends the more educated a choice you can make, resources for tracking rates include the Treasury Market. Some lenders may be offering seemingly better rates than others but may be more costly in other ways such as additional fees. Keep every variable in mind and test the waters, it doesn’t hurt to let a lender know about a fellow lender’s rates to let the haggling commence.

Once you have decided on a particular lender and are happy with all of the factors involved, request a temporary contract stating the agreed upon rates to guard against any changes being made due to increased interest rates. That is not to say all lenders will try to cooperate and keep the verbal agreement, however, it can pay to err on the side of caution.

Taking on a mortgage should not be entered lightly, there are many aspect that need prior examination. so that you come out with the optimum mortgage and give you the best possible start in life.