You shop around when buying a house, so you should seriously consider shopping around for your mortgage. If you want to get a great deal on the house, you should also try to get the best deal possible on the mortgage. Here are some tips to help you in the process:
1. Shop for the best rate possible. Pay close attention to the points you will be charged. This can save you thousands of dollars over the life of the loan.
2. Ask the lenders to give you a good-faith estimate (GFE). This statement will itemized the closings costs for you. Ask the lender any questions you may have regarding any of the fees.
3. Prepayment Penalty. Make sure you do not have a prepayment penalty. Life changes and you may need to resell. In addition, you may want to refinance or pay additional or your principle loan amount.
4. Be comfortable with your lender. This can avoid closing time surprises. Make sure your lender is responsive and gets back to you in a timely fashion.
5. Find a lender that can work with your specific situation. Not all lenders know how to run all types of loans. Some can work with tough credit and some can’t. Some now how to run through state programs and some not. Ask specifically if they can help you with the kind of program you need. Ask multiple lenders these questions.
6. Ask how long your rate lock period is. Each lender has a different lock rate period for you to choose the rate. The lock length rate can vary from 30-90 days. Some lenders charge a fee if you want to change the rate once locked in. Interest rates may be increasing during the time you are applying for your loan. So keep a close eye on rates and ask your lender to assist you. They know the market’s rate history and trends well.