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How to Shop for a Mortgage
When you are shopping around for a mortgage, it can be difficult to know what to look for. Not only is there plenty of competing advice out there, but the mortgage lenders themselves can often give such confusing advice that it is impossible to know who to trust. Even worse, you know that the choice you make will affect your financial well-being for years to come.
It doesn’t have to be that way, though. Trust these five tips for on how to shop for a mortgage, and you will find your decision to be much simpler.
Get multiple offers. Comparison shopping with real offers is key to getting the best loan options. Many people worry that this kind of credit shopping will hurt their credit, but in reality, the credit bureaus consider this to be one credit check event, so there is no risk in shopping around for the best terms. 77 percent of borrowers apply with only one mortgage broker or lender, which can lead to tens of thousands of dollars in losses. You don’t have to be a part of this majority.
Weigh the pros and cons of mortgage types. Most people choose either a fixed-rate or adjustable-rate mortgage. Other people look for less common alternatives like interest-only mortgages, where you pay only the interest for a set period of time, or hybrid loans. Which one works best for you will depend on your unique financial situation. For example, a person looking for a long-term investment may like the stability of a fixed-rate mortgage, while a person who knows they may sell the home in a few years can take advantage of the lower starting rate of an adjustable-rate mortgage without risking a huge spike in rates. It is important not to take general advice, but rather to consider personal variables above all else.
Read reviews and examine your potential lender’s trustworthiness. A great-sounding deal isn’t worth anything if you will be subject to terrible service and you cannot trust the word of your lender. Read Ohio consumer protection bureau ratings and reviews from past customers to get a good idea of how you will be treated.
Get professional help reading the contract. Mortgage contracts are extremely complex. The average person is not an expert, so it is easy to miss important information that could affect your loan. It’s crucial for buyers to read the often-confusing fine print carefully. Ask a trusted consumer debt professional, such as an attorney, to help you review the mortgage contract before you sign, so you aren’t surprised later on.
Don’t feel pressured to take a mortgage that doesn’t feel right. Even after you have done a full analysis, trust your gut if something feels wrong. You have three days to back out even after signing, so take advantage of this time. Don’t be afraid to say no to anything that feels wrong.
If you follow this advice, you will be able to find the mortgage perfect for you and your family. If you have encountered hard, financial times or are looking for more specific advice for your unique financial situation, an Ohio consumer protection firm like Luftman, Heck, and Associates may be able to help. Call attorney Jeremy Heck today at (888) 726-3181 to set up a consultation to discuss your options.