Monday, August 25, 2014

Avoid These 5 Mistakes and Save Big Money on Your Mortgage

 You can effect the cost of your mortgage!


For most consumers, the largest single financial transaction of their life will be a mortgage. Unfortunately most borrowers approach the process of shopping for a mortgage with less care and analysis than they would for buying a new vacuum cleaner. This is likely because many folks feel that a mortgage is complex and confusing. Thus they allow lenders to control events.

  1. Choices - Like any consumer product or service, you have choices when you want to secure a mortgage. There is plenty of competition for these large dollar transactions. Don't merely use the company you used last time, or the one recommended by your neighbor. You could save on both interest and costs by shopping around.
  2. Broker - One of your choices is whether to deal directly with a bank or use a broker. Don't assume your best deal is with a bank. While it is certainly possible to get the best deal at a bank, you are far more likely to find the lowest cost offer with a broker. The broker will shop your loan with various lending institutions to find the best deal on the market at that moment in time.
  3. Shopping for Brokers - In today's world, you have much more information to go on than just a few years ago. Don't go with the first broker you hear about. In addition to getting recommendations from friends and family, you can now evaluate online reviews offered by Google, Yelp, YellowPages.com, and others. This is a huge purchase, check out 5 or 10 different brokers before you make a decision. 
  4. Credit Repair - Your broker should be able to help you make some decisions about fixing your credit in order to improve your score. Unless your credit score is perfect, don't assume you can't make it better. In some cases, it may be worth spending a little money with a reputable credit repair company in order to improve your score. You may save substantial interest and/or costs for premium mortgage insurance over the life of the loan by increasing your score just a few points. 
  5. Lock Your Rate - During the course of your escrow, interest rates will fluctuate, if even just a few basis points. Don't expect to be lucky enough to pick the absolute bottom rate offered while you are in escrow, but do keep track and be willing to spend a little bit of money to lock a rate that could save you a lot of money over the length of the loan. A good broker will help you with this process, but an honest broker will tell you that they are not in the business of guessing the bottom of short term swings in rates. 
If you follow these five directions, you are likely to get the best possible deal on your mortgage. One more thought. Take your time and be wise in the entire decision. Don't overspend for the home, take actions based on emotion or pressure, or figure that anyone else involved in the process has your best interests at heart. The broker is the most likely to be invested in your success. He wants a great review on the internet, and he wants you to tell your friends to call him. Moreover, he only gets paid if you complete a deal.

Bill Rayman has a well deserved reputation for being the kind of broker who cares a huge amount about getting you into the home or condo that you have chosen for your family. His reviews reflect that concern, and he can provide you with dozens of referrals. Call Bill now to discuss your real estate plan.  424-354-5325

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