Understanding how to find the right mortgage will save you time and money.
- Choose the right shopping strategy for you.
- Follow the steps we have outlined.
Understanding how to find the right mortgage will save you time and money.
There are two ways to climb the mortgage mountain: with a guide or on your own. Take the one that feels more comfortable for you.
1. The simpler path is to choose an experienced professional early in the process, and let that person be your advisor. If you choose wisely, you will end up with a mortgage package as good, or even better, than that of someone who spends a great deal of time shopping many different lenders. You may decide on a loan officer at a bank or credit union, a mortgage broker, or an online lender. For advice on finding the right person, and what that person will need to know to give you the best advice, go to How do I find a good lender?.
2. Your other choice is to investigate multiple options, analyze many different programs, and contact a range of lenders—at least one bank, one mortgage broker, and one online lender. If a more hands-on, self-directed program is what you are looking for, How do I compare mortgage offers from different lenders? will guide you through that process.
Choosing the right shopping strategy and following the steps outlined here is a good investment. Lowering the interest rate on a $400,000 loan by one quarter of a point will save you over $5,000 during the first five years of your loan. The advice in the Insider's Guide to Mortgages will help you find the lowest rate on the mortgage that best matches your current financial situation and your long-term financial goals. It will also save you from finding out at closing that the loan terms or fees you were expecting had changed.
