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Shop Around For A Mortgage
By: Jennifer Hershey
If you have decided to take the leap into home ownership or you are interested
in refinancing your current mortgage, one of the first things you will need to
do is track down a mortgage.
I honestly can’t tell you just how many mortgage companies there are in the
United States, but I can tell you this, there are a lot of them.
Mortgage companies also come in a few different forms. You might recognize one
as your local bank, but there are also wholesale lenders who use not only there
own loan officers to originate mortgages, they will also use mortgage brokers.
Than you have your retail lenders, who use only their own employed loan
officers.
Because there are so many mortgage companies out there, the industry has become
highly competitive.
So before you commit to the first lender you approach and start filling out
applications, look again, and consider shopping around. Like I said, the
mortgage industry is highly competitive, so let them fight over you.
You don’t have to go crazy when shopping for a lender. No more than five
inquiries should be your limit. Talk with them, find out what programs they have
to offer, and at what rate. Ask about closing costs. Remember, closing costs
should not exceed 5% of the total amount of the loan at the very most. (This
does not include the down payment).
By shopping around, you will be able to get a feel for what is out there, and
whatever lender offers you the best deal to fit your needs and your budget,
should be your lender of choice.
The down fall to speaking with one lender is, you are limiting yourself too just
their products and services, as well as their rates. How do you know you can’t
get a better deal somewhere else? Most likely you can.
Shop around for a mortgage the way you would shop around for a car. Look at a
few of them at different dealerships, test drive them, discuss pricing with the
sales person, than once you and the selling party have come to an agreement,
make the purchase.
Buying or refinancing a home is not something you want to rush into. So take
your time and educate yourself. Talk to people within the industry, shop around,
than make an educated decision based on what best fits your needs.
About the Author:
Jennifer Hershey has more than twenty years of experience in the Mortgage
Industry as a loan officer. She is the owner of http://www.explainingmortgages.com/, a mortgage resource site devoted to making mortgage terms and products easy to understand. |
