What to Avoid When Shopping for Mortgage

What to Avoid When Shopping for Mortgage

Men talking about mortgage terms

Life is very hectic in today’s world, and most people who shop for a home mortgage are at a productive age with full-time jobs. Hence, they tend to make certain common mistakes when they look for a mortgage. If they slow down a bit, these errors can be avoided, and they can get a precise quote.

Shortlist companies and compare terms

Purchasing a home is one of the largest investments you will make in your lifetime. Do your research well and approach a reputed and well-known mortgage company. St. George has many of these, but wherever you reside, always make a shortlist for your home mortgage. Choose a couple of companies and get quotes from all of them. This will help you decide which one will best suit your needs. Comparing the services, the charges and the rates is mandatory, before zeroing in on one mortgage company. Try to avoid the following common mistakes.

1. Don’t think that an accurate quote is possible with incomplete information. Have a thorough discussion with your loan manager as several factors will affect the mortgage rate that will suit you.

2. Do not try to get quotes on different days of the week. The mortgage rates are very sensitive to time and can change even during a given day. Rates change during the day as stocks do, so, get your quotes on the same day and at the same time.

3. Do not fail to confirm if the rate quoted can be locked and guaranteed till your anticipated closing date. Some online quotes are floating rates, which will put you at the mercy of fluctuations. So, it is best to understand for how long the rate lock stands.

4. Do not fail to verify if the escrow and title fees are accurate. You can shop for the title fees, and when you get a quote find out if it is an estimate or an exact figure. Some quotes underestimate the costs for insurance and taxes.

5. Finally, do not limit your interactions with the loan manager. Talking with these professionals will help you discover other options, which you were not aware of and which will help you save money too. Once you avoid the mistakes mentioned above, you can be sure that you will find the best mortgage rates for your situation.