Buying a home is a huge commitment, and your mortgage will likely be the
largest and most important financial transaction you'll ever make.
you are a first-time buyer with limited funds, or you're fortunate enough
to have a few dollars tucked away, there is a mortgage lender ready to
help make your dreams of home ownership a reality. It's a serious
decision, and you must understand that there big differences between the
varied types of mortgage lenders. Many are honest and reputable with your
best interests at heart; others are little more than loan sharks hungry
for your cash.
Here are some pointers to help you choose the best
source of mortgage funds to meet your needs:
to finding a trusted lender is a good reputation. Established mortgage
lenders have worked hard to build a good name, so avoid newer companies or
"fly by night" lenders. Reputable mortgage lenders understand the business
and save their clients a lot of the hassles that can be associated with
acquiring a mortgage. If you know that the mortgage lender has a good
reputation, or if he or she has been recommended by a trusted source, it's
easier to have faith in the lender's knowledge and service. Faith is about
more than getting a loan; it's about being open and honest with your
Mortgage Rates of Offers
The biggest difference between
mortgage lenders often lies in the rates they offer. Know the current
rates before you shop for a lender, and keep checking before you sing an
agreement. If you find a lender you'd like to deal with, check their
current rate against those offered by reputable competitors. Don't jump at
the first offer you receive. Check for flexibility in terms of formulating
offers; that is, whether terms and amortization tables are negotiable.
really good mortgage lender will help you with the mountain of paperwork
at hand. Ideally, he or she will take care of all of the details. After
you provide the basic details, the lender will take care of the rest of
the documentation until all that's left is for you to sign the dotted
line. Good mortgage lenders take the time to review the documents with
their clients to fully explain the mortgage terms and conditions, satisfy
any doubts and eliminate the possibility of errors.
lenders need to provide you with information about all of the options
available to you, and they need to do it with promptness and clarity.
Buying a home is a stressful time, and you shouldn't add to your anxiety
by waiting for a call or trying to decipher mixed messages from your
mortgage lender. Make sure that the person you deal with can clearly
explain all of the mortgage terms and conditions, and readily presents a
variety of options. Good mortgage lenders are open to your questions and
provide honest, straightforward answers.
lenders do not charge exorbitant fees. In fact, many banks employ mortgage
professionals, so you will not be charged a service fee at all. If you do
decide to go with a private mortgage lender, be sure to get a complete
list of costs and fees upfront and in writing.
A home purchase is
exciting, and many people will do just about anything to make it happen.
However, you need to know that there are dishonest lenders who take
advantage of honest people. Remember, even though they are lending you the
money initially, you are paying it back with a very large amount of
interest added on top of the principle. You are doing them a favour, not
the other way around; and you need to make sure that they deserve your