Choosing the Right Mortgage
Before the days of credit crunch, credit squeeze, and recession, it was quite easy to get a mortgage on your new property. Much has changed though. Lending standards have altered, offerings have been scaled back. Deals are still out there but you have to look harder to find them. Money lenders are not prepared to take the same risks that they once did. And, there are some traps to avoid.
Here are some ways to find the mortgage that is right for you.
Take a look at some online referral sites. You do not have to put your personal details in at some of them. These sites are particularly useful for those who have a good idea of the type of loan they are after. You will see what the current rates are like, be able to make comparisons between various lenders, check the fees involved in taking out the loan and so on. Check a number of sites, because you could find that some miss out certain fees (either knowingly or unknowingly), and when you come to meet up with the bank or other lender`s representative to go ahead you could be in for a nasty surprise with unexpected fees.
If you come across a site which asks for your Social Security number and/or address upfront then skip it. If your credit report gets checked you could find your score is damaged if you do not end up getting your property loan. You could try your local bank. Loan officers should be able to offer you some advice on the right loan for your circumstances, and they will have knowledge of the local area. Smaller banks might even be prepared to offer lower rates than their bigger cousins right now as they look to get a larger slice of the mortgage pie.
Some buyers are not always sure of which mortgage is right for them. This is where brokers come in. This is especially true if you are looking for a jumbo mortgage, or if you are looking for financing for investment property rather than one you intend occupying yourself. Brokers are trained to look for loans for those with unconventional needs. Check their fees though. Look at web sites, talk to banks, and find out what sort of rates and fees they will charge. If a broker can get you a better deal on rates then you won`t mind paying a fee for his services. Finally, do not forget to check with your current lender, since they might be able to offer you preferential terms to keep you with them if you are moving home.
Here are some ways to find the mortgage that is right for you.
Take a look at some online referral sites. You do not have to put your personal details in at some of them. These sites are particularly useful for those who have a good idea of the type of loan they are after. You will see what the current rates are like, be able to make comparisons between various lenders, check the fees involved in taking out the loan and so on. Check a number of sites, because you could find that some miss out certain fees (either knowingly or unknowingly), and when you come to meet up with the bank or other lender`s representative to go ahead you could be in for a nasty surprise with unexpected fees.
If you come across a site which asks for your Social Security number and/or address upfront then skip it. If your credit report gets checked you could find your score is damaged if you do not end up getting your property loan. You could try your local bank. Loan officers should be able to offer you some advice on the right loan for your circumstances, and they will have knowledge of the local area. Smaller banks might even be prepared to offer lower rates than their bigger cousins right now as they look to get a larger slice of the mortgage pie.
Some buyers are not always sure of which mortgage is right for them. This is where brokers come in. This is especially true if you are looking for a jumbo mortgage, or if you are looking for financing for investment property rather than one you intend occupying yourself. Brokers are trained to look for loans for those with unconventional needs. Check their fees though. Look at web sites, talk to banks, and find out what sort of rates and fees they will charge. If a broker can get you a better deal on rates then you won`t mind paying a fee for his services. Finally, do not forget to check with your current lender, since they might be able to offer you preferential terms to keep you with them if you are moving home.
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