Mortgage payments are long-term commitments, as you will most likely be paying it for 15 or 30 years of your life depending on your term. Given this long commitment, you may want to choose for the best mortgage out there for you, as this will determine the payments you will be making for quite some time. How do you know which mortgage company or lender is best for you?
As previously reported here on Realty Today, very few homeowners do a lot of research prior to submitting a mortgage application. One of the most common mistakes that people make is refraining from comparing several lenders.
Comparing several lenders is a must if you want to get the best offers and terms for your mortgage applications. In doing so, you can be sure that you are getting the best deal, but you should also be wary of getting quotes on interest rates from different lenders.
According to Trulia, getting quotes on interest rates from different lenders also generates a hard inquiry on your credit report. If several companies pull out your credit report at different times, your credit may suffer. One way to keep your credit from taking a plunge is to keep the inquiries within a short time frame in order for the inquiry to be counted as one in your report.
The publication also notes that one should ask his or her mortgage lenders about points and the impact of their down payment on the interest rates of the loan that they are getting. For example, paying for a down payment lower than 20 percent may require you to get a private mortgage insurance.
You may also want to ask about locking in the interest rate once you find the best interest rate for you. You also need to be wary that locking in your interest rate has an expiration date, so you will need to know about these things before proceeding with your application.
