Naturally, you want to get the best deal for the least amount of money. You want to get the best mortgage rate as well. A lower interest rate means a lower monthly mortgage payment, which can save you money in the long run. Also, it is easier to qualify for a lower payment than a higher one. You have two routes to finding the best rate. The first is to do all the research on your own.
The second is to use a mortgage broker.
With the advent of the Internet, much of this information is readily available online. Once you have educated yourself sufficiently about real estate loans, all it takes is the time and energy to sift through online resources to find the information you need.
Rates change quickly. That low level you find today might not be there tomorrow. Once you locate the rate you are looking for, submit a loan application and lock it in.
When comparing loans, make sure that you’re comparing loans of the same type. For example, you find that “Loan A” for a 30-year loan has a much lower interest rate than “Loan B” (also for 30 years). Upon further inspection, you find that “Loan A” is technically an adjustable rate mortgage. Its payment is based on a 30-year amortization, but becomes due through either payment or refinancing at the end of 5 or 7 years. These refer to as a 5-year or 7-year fixed-rate mortgage. While both said “30-year”, they are not the same type of loan.
Ask the lender for a statement (Good Faith Estimate) detailing all fees associated with the loan. Factors such as “points” (loan fee), interest rate and “garbage fees” (extra fees which some lenders charge) can vary widely from one lender to another. Most important is the APR (Annual Percentage Rate) which shows your interest rate will ALL fees included!
If you do not have the time or experience to “do it yourself,” look for a qualified mortgage broker that can assist in finding the right mortgage for you. Ask friends and associates who have refinanced or purchased if they have a broker they can recommend. You’ll want to find a broker who is energetic, flexible and knowledgeable about finance and loans and someone who has your best interests in mind.
Lately, I have worked with a great Mortgage Broker. His name is Darik Tolnay with AmeriFirst Financial, Inc. They have put together a unique strategy that can give you an edge in Denver’s home market. I would advise strongly to watch his short video. No other company or broker is using this system. If you are trying to purchase a home in competition with multiple buyers, this strategy will put you at the front of the line!
Let me know if Darik’s strategy interests you. Give me a call or fill out the “Get Your Mortgage” worksheet and you will hear from Darik quickly!