3 Common Mortgage Mistakes to Avoid That Could Save You Thousands on Your Monthly Payment
A mortgage payment is the biggest expense you will ever have. Mortgage rates were recently at a record low. Homeowners are taking advance by refinancing their existing mortgage for extra year long savings.
Convincing clients that calling one lender is not enough is a constant challenge. New home buyers should shop around, do their homework and truly understand the lingo before finalizing there loan. It is in the homeowner’s best interest to make sure they feel 100% comfortable with the loan. The worst you can do for yourselves as new buyers is not fully understand what you are signing.
Be a savvy new home buyer when it comes to your mortgage and avoid these common downsides. A small percent in rates or fees could save you thousands in the long run.
Mistake #1 – Thinking Only Your Interest Rate is Negotiable
The best initial approach you can take is comparing different loan offers. This can still be confusing in itself. Pay attention to the combined cost of all fees the lender is quoting, not just the interest rate. There are many types of fees reflected on the APR. Everything can be negotiable…so educate yourself!
Mistake #2 – Forgetting to “Price Match” Your Loan
Savvy consumers price match everyday on everything! TV’s, furniture, cars and even dog food – so why not do the same when you are selecting a lender? The worst thing you can do is get a quote from only one lender. Make sure you ask another lender if they can counter offer so you can get the best rate.
Mistake #3 – Not Locking Your Rate
Rates change on a daily basis. Make sure you are getting your quotes on the same day and submit your application to lock in your rate. This will avoid changes in your upcoming costs and expenses. A standard loan locks for 30 days but cost could vary depending on the days quoted for a lower guaranteed rate versus a higher one.