Often the funds that have been saved are not sufficient to buy a home. One has to depend on mortgage to help him buy a dream home. Just like shopping for your dream home needs to be done, similarly people in the US are also resorting to shopping for home loans to get the best deal out of the whole lot.
Certain tips if followed can ensure great mortgage deal:
1. When quotes are received from various mortgage companies in the US, it is important to study in detail about all the costs such as all kinds of fees, interest’s rates that are included.
2. It is important to ask for the complete Good Faith Estimate worksheet instead of just the GFE.
3. The person who will responsible for assisting you with the total process of getting mortgage such as a loan officer, a broker or a bank employee should be interviewed to find out if he has the requisite qualification and experience and also license in case of brokers. This is necessary to get the assurance that they will give you proper guidance.
4. One needs to plan for certain additional costs such as real estate transfer taxes, title insurance, homeowner insurance which are not charged by the lender, but has to be paid by the buyer separately.
5. Free credit report should be asked at the initial stage. This will enable you to know your financial position and also you would be in a better position to demand the best terms available.
6. Decide on to pay low interest rate by paying more amounts upfront when planning to keep the loan for 30 years or vice versa.
7. It is important to provide all the documents as well as disclose everything about your financial situation which will help you in getting suitable mortgage for your home.
With the lowering of mortgage rate in the US, many people are resorting to buying new home and the above tips will be useful in guiding the buyer about the proper steps that needs to be taken.