As an Illinois mortgage lender, my specialty is working with first time home buyers, so we know how critical it is to save money on your mortgage. Whether renting or owning, your housing expense is your largest monthly payment, and you want to do what you can to save money when you buy a home.
Here are some essential guidelines to help you get the best mortgage deal when purchasing a new house:
- If you can’t afford it, don’t buy it. Make a budget so you can see what all your expenses are and to make sure you feel comfortable with the new payment.
- During the home purchase negotiations, ask the seller to pay for all your closing costs. This can save you thousands when you need it the most.
- It is important to meet different lenders and compare them and choose the one who gives the best deal .This is essential as there may be huge differences between one lender and the other with regard to cost of a mortgage.
- Check on the different rates quoted by each lender and pick a rate to compare. If each lender is basing the loan on the same rate, you are comparing apples to apples and can see the difference in closing costs.
- Ask the lender if any extra fees can be waived off. This may or may not be possible, but it never hurts to ask.
- When choosing the mortgage programs it is important to check on different programs and choose the one that suits your needs the best. If you don’t intend to stay in a house for a long time then mortgages that have adjustable rates can be a better option than fixed rate.
- All the terms and conditions should be in writing and the rate should be locked. A Good Faith Estimate as well as a lock in agreement which shows that the lender has agreed to the terms should be given by the lender.
- A lot of research needs to be done on the lender and any information about him should be got from sources who are familiar with lenders in the area, like the realtor or the lawyer. Do a Google check. You can find out a lot with a basic web search.
- When getting mortgage for a new house it is important to feel at ease with the person who is helping and analyze if the advice he gives is beneficial. In other word it can be said that the gut feeling should be given prime importance.
- If money can be saved on mortgage as well as home purchase the budget can be managed a little more better, and all this ca be done by planning things a little more sensibly and before hand.