The Consumer Financial Protection Bureau reported recently that nearly half of all homebuyers chose not to shop around for their mortgage. Homeowners are cautioned not to neglect shopping for the best mortgage deal. Savvy buyers should make sure they are securing the best possible rate available to them.
What other things should homebuyers be considering when hoping to secure a mortgage?
Homebuyers should begin by understanding the various types of mortgages. Understanding mortgage rates is the first step to saving money on a home purchase.
The biggest difference in price can be yielded from the smallest change to interest rates. It is not the initial rate of a percentage point or half a point, but years of accrued interest over the life of a loan. Not only should homebuyers make sure they understand the rates associated with their loan, but also the several types of loan products available in the market. The most mainstream mortgage types are fixed and adjustable rate.
Last point, homebuyers should protect their credit score. It is advantageous for home shoppers to apply for all their mortgage loans at once or within a limited window to decrease the number of inquiries on your report. Whether using a bank, a credit union or a mortgage broker, borrowers should be sure they understand their credit situation and the specifications of your mortgage loan.