You have made the decision to buy a home and start looking at properties. Before you get rolling, you should start trying to find the best mortgage option for your situation.
Most people begin shopping for a mortgage at the last minute and settle for the first offer they get. This is an absolutely terrible thing to do. A house is one of the most important things you will ever be able to own and getting a mortgage on that house, or, more correctly, getting the best mortgage possible on that house is only too important. The only way you will be able to find that perfect mortgage is to shop around.
Obviously, this means that you should begin looking as soon as possible. Don’t wait until the last minute to search for mortgage options, rather leave yourself as much time as possible to go through as many lenders as you can and see what each has to offer. Every lender is different and will provide different plans with different rates and different things tied to those mortgage plans. You need time to go through all of these different offers and sort out the good from the bad. If you don’t have perfect credit, use a mortgage broker to find the best deal. This is all they do, so they can give you a huge head start.
If you wait until the last minute to find a mortgage you will be forced to settle on one early and can end up costing yourself tens of thousands of dollars in the long run. One percentage point of interest might seem like a small amount, but when that one percentage point is used on a mortgage of hundreds of thousands of dollars based over 20 to 30 years, that one percentage point can end up equaling tens of thousands of dollars! That money is all interest that is being paid to the lender. You have better uses for your money, don’t allow a lender to take more from you than he has to. Shop around and find the lowest interest rate and best mortgage plan possible.
It is advised to begin shopping for a mortgage as soon as you decide that you might be interested in purchasing a home. You don’t have to get too serious, but check out the major banks and lenders that you know of to start with. Lay some groundwork and get some feedback. Start making some goals of how much you will need and what sort of interest rate you want. It is highly advisable to get pre-approved for a loan if at all possible. Keep these things in mind and shop around to find the best plan possible.
Sergio Haros is with Great Western Mortgage - San Diego mortage services.
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