Shopping Around for a Mortgage? - Avoid These Mistakes
When you are looking to shop for a mortgage, these days you are given also with the opportunity to make the shopping online. A chance that usually reveals various options to compare and eventually choose the one that is the most convenient to you. This brings us to the mistakes that you have to avoid when shopping for a mortgage:
- Go with the first lender that is presented to you. Many borrowers, I don't know for what reason (maybe because they lack time), choose to go with the first lender they come across. They don't even think that the terms and conditions of these mortgages can differ with each and every lender, but they are! So, make sure to choose at least five or six of them, prior to narrowing down the list to two or three as you continue with the comparisons.
- Not asking for quotes on different days is another mistake that you need to avoid because most of the times the rates provided are in close relationship to the changes and fluctuations of the market.
- Not asking about the rate lock. When you require for a quote and it seems that this one is the suitable one for you, do not forget to ask if this is the one that will be set with the closing of the mortgage application process. If you omit this aspect, you will find that today you are given with a rate and if this one increases over the time and while you wait for the application to be approved, you can end up having this new rate instead the one you have been given with at the time when shopping for mortgage loans.
- Not spending enough time with your mortgage agent. Once you find online the mortgage lending institution you should visit their office and in here you will be designated with an agent to discuss things over the mortgage plan offered to you. At this point, you have to forget about any other things you have to do at home and focus on this discussion. Keep in mind that purchasing a house with borrowing a mortgage loan is an important step for both your future and that of your family. So, be prepared with asking a lot of questions (it helps to have a list prepared beforehand with the needed questions because you may miss out on many of the important ones).
- Not checking with the accuracy of the title and escrow fees. This is another mistake since the title fees are usually set by the title company and you can as well shop for them. Once a mortgage agent presents you quotes, you have to ensure whether they are estimation or are the exact ones.