Most first-time home buyers believe that the best mortgage deal means having the lowest interest rate.
But let’s take a step back.
When you’re evaluating your mortgage, there are several variables you need to consider, instead of just the interest rate.
So to help you get started, here are 3 questions you need to consider.
Can I comfortably afford the monthly payment? This includes all costs - taxes, insurance, PMI, HOA dues, and more.
Are the costs the lender is charging competitive for my scenario? To make sure, I always encourage clients to seek a second opinion before committing to a lender.
Does my loan strategy make me a competitive buyer? Some sellers won’t accept offers with FHA financing or down payment assistance, for example.
Once you understand the details behind a mortgage, you can compare different quotes. But it can be overwhelming to choose a lender.
So to make it simpler, here are the 5 areas you need to pay attention to, every time you’re evaluating a loan estimate to see if it’s the right fit for you.
The Interest Rate
The PMI
Lender Fees
Third-Party Fees (You can’t show for these)
Lender Credits
The remaining fees aren’t affected by the lender you choose, so you don’t need to worry about it.
So now that you know how to understand your mortgage and how to compare the different quotes you’ll receive, you are one step closer to closing on your dream home.
Knowing what to expect before, during, and after you buy your next home can ensure a smooth and stress-free process.
If you’re ready to learn more about your personal mortgage journey, based on your unique situation and preferences, you can send me an email here: (rebecca.richardson@wyndhamcapital.com)