Are you preparing to purchase your dream home? If so, you may have already completed many of the tasks associated with home buying.
- Set aside earnest money
- Gathered your financial documents
- Learned how to get the home inspected
Good for you, but there is still much to do when buying residential real estate. Choosing the right mortgage lender is chief among these tasks. Contrary to belief, they are not all the same. The following tips can help you make the best choice:
Learn about mortgage types
You can choose from many different types of mortgages. The 30-year fixed interest rate mortgage is by far the most common. Although it will take 30 years to complete the purchase, the payments are typically less than imposed with shorter-term loans. Plus, you can rest easy knowing your interest rate will never increase.
Search for the best interest rate
Rather than automatically going with the first lender you come across in the phone book or online, look into the interest rates offered by multiple lenders. Many people do not realize that interest rates can differ among lenders. Your diligence ensures you find a loan with the lowest rates possible and no hidden fees.
Read loan estimates carefully
You may want to skim the fine print in the loan estimates you receive from various mortgage lenders, but this is a risky practice. You must scour these papers, reading every sentence in the document. Doing so helps you eliminate unsuitable lenders that may impose hidden fees or other undisclosed costs.
Ask a professional
Those who practice real estate law in Connecticut have a wealth of authoritative information to share about mortgage lenders.