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5 Tips for Shopping for a Mortgage
Buying a home is an important decision that should be carefully considered and thoroughly researched.
Check out these 5 tips for shopping your mortgage:
1. Know what you can afford. Review your monthly spending plan to estimate what you can afford to pay for a home, including the mortgage, property taxes, insurance, monthly maintenance and utilities.
2. Shop around—compare loans from lenders and brokers. Shopping takes time and energy, but not shopping around can cost you thousands of dollars.
3. Understand loan prices and fees.Many consumers accept the first loan offered and don’t realize that they may be able to get a better loan.
4. Know the risks and benefits of loan options. Mortgages have many features—some have fixed interest rates and some have adjustable rates; some have payment adjustments; on some you pay only the interest on the loan for a while and then you pay down the principal (the loan amount); some charge you a penalty for paying the loan off early; and some have a large payment due at the end of the loan (a balloon payment).
5. Get advice from trusted sources. A mortgage loan is one of the most complex, most expensive financial commitments you will ever assume—it’s okay to ask for help.
Read the entire article over at FHFA.gov.