Are you getting the best deal for your mortgage?
If you’re like most home buyers, especially new ones, you’re probably not. When shopping for a mortgage (if you can call it that), most people make their first stop at the local bank where they have their checking and savings accounts. At this point, most people end their search.
What a shame, you probably could have saved thousands in interest and closing fees if you shopped around just a little but more.
There are thousands of banks, mortgage companies and lending institutions that would love the opportunity to lend you money to buy a home. Rates can vary wildly between lenders and the difference in closing cost fees can be in the tens of thousands.
Even if you have fair or poor credit, there are still lots of companies more than willing to give you a fair shake. You can get rejected by 20 companies and then land a mortgage at a competitive rate on the 21st try. While there are certain criteria most lending institutions use to qualify someone for a mortgage, many of the aspects are subjective. It really comes down to finding the right company and person that believes in you.
If you’re shopping for a new tv, you may spend dozens of hours combing through the internet to find the best deal, which is usually the difference of a few bucks. For a mortgage?, over two-thirds of homeowners feel like they didn’t get the best deal……mostly because they didn’t spend the time to try.
Getting a mortgage can be a confusing and nerve-racking experience. Strangers comb through your personal finances and make judgments about you, or at least that’s what it feels like. If you want to find the best deal, you have to get over it and act like a top salesperson who’s bulletproof when it comes to rejection and taking things personally. Jeffrey Hristovski of Mortgagemeister.com, a mortgage broker in Toronto, says that spending the extra time to evaluate all of your options can save you tens of thousands of dollars over the life of a mortgage.
Whether you go with your local bank, a mortgage broker or an online lending institution, make sure you know all of the options available to you before making a decision. You’re not locked into a relationship when you get a quote, don’t let anyone pressure you into doing business with them because they gave you a quote. If it doesn’t feel right, it probably isn’t.
If you have a real estate agent and not sure about your mortgage options, they can usually provide some high quality mortgage referrals as they work with banks and mortgage agents all the time. Our real estate agent in Vaughan, Lisa Sinopili, helped us find our mortgage broker and we were very happy with the results.
Take a look at this infographic from lendingtree.com that gives some good statistics to show you what poor mortgage shoppers we really are.