Shopping for a Mortgage

Mortgage shopping has nothing to do with convenience, and where you currently bank is irrelevant. It not as if you’re ever going to visit your mortgage company for coffee. Whether they are located across town or in a different state, all that matters ins their rate and terms. They payments will be debited from you account no matter where you live or bank. When it comes to taking on a debt of this size and length, it is not the time to be lazy, complacent, or just consider convenience. It will take some work, but it is worth it. Just a quarter percent reduction in rate will save almost $1000 in the first five years of a mortgage. That should be enough incentive to do your homework.

Just as finding the perfect house comes with a must have and a nice to have list, the same should be the case for a mortgage. There are always features that will be more important that others. Although the main issue will always be interest rate. After that, you will need to decide what term and total amortization suit your budget. Aggressive enough that you will save a significant amount of interest and conservative enough where you will still be in your comfort zone and allow you to sleep at night. So a mortgage should not be an afterthought when shopping for a home. The interest paid on the mortgage will be much higher than the original purchase price, so it needs to be one of the first things to deal with not the last.

To find the best rate and options, you need to approach lenders with a clear list of the features you want. But there is much more to obtaining a mortage than just the rate. It is also important to seek out other various features in the mortgage:

• Lowest interest rate

• Minimal up front costs and fees

• Largest and most flexible pre-payment features and options

• Lowest cost and most flexibility to renew or pay in full

• Getting the mortgage features in writing

• Longest time frame for pre approval