When looking for a mortgage, it is important to know that not all mortgage lenders are the same. You might think that if you are getting a conventional loan that it doesn't matter what company you get to process your mortgage, but this isn't true. Instead, you need to look around and interview a couple different mortgage lenders before you find the right one. Here are some questions you should be asking mortgage companies.
1. What Is The Best Price You Can Give Me On Interest?
Interest rates are interesting; it is not like there is one set value that you should expect. Each lender will be willing to give you a different interest rate based on the current market value. Thus, the person who bought their house a year ago could have a completely different interest rate than you are getting, even if all of the factors are similar.
But current market value isn't the only factor. It also depends on your individual situation. They will take into account your credit score, income, credit history, and so forth. Thus, there is a bit of wiggle room on interest rate. So before you commit with anyone, you need to shop around and see who can give you the best interest rate.
2. What Kind Of Closing Costs Do You Charge?
Another important factor in your mortgage are your closing costs. Every lender will have a set of fees that they charge to process the loan. These fees can range anywhere from a couple hundred dollars to thousands of dollars. If you are not careful, you can overpay on your closing costs and be out a lot of money.
Some companies will roll the fees into the loan so that the amount that you pay upfront is a lot less. If you are planning on being in the house for less than 10 years or so, this is usually the best option because it will take you longer than that to pay them off, so you will save money in the long run and pass the fees onto the next buyer. However, that is something that should be talked about with the mortgage lender and really calculated. You should never just accept someone's fees at face value.
3. Don't Be Afraid To Barter
Lastly, don't be afraid to pin the companies against each other and let them bid for your business. This will allow you to get the very best deal with it comes to your mortgage.
By knowing these things, you can make an educated and smart decision about your mortgage.
