Three Simple Tips for Comparing Mortgage Loans

Has the time come for you to buy a home? Congratulations. This is a fun and exciting process, not to mention the fact that it starts a new chapter in your life.

Before you can move forward, however, you need to settle on a bank that can provide you with a mortgage. While some people are able to pay for their home in cash, most rely on a home loan.

With so many available lenders, both local and national, comparing the finer details of each one can be a time consuming and challenging process. You may not take the time to contact hundreds of lenders, but you definitely want to compare at least three.

As you get started, here are three tips to simplify the comparison process:

1. Compare apples to apples. If you automatically assume that every lender and loan product is the same, you will not end up making an informed decision.

Details differ from one lender and loan to the next. Along with this, rates change on a daily basis. If you are going to compare multiple lenders, make sure the details are the same with each one.

2. Get prequalified. This is something to do before you begin your home search. You want to know how much you are qualified to spend, ensuring that you stay within your budget.

Go through the prequalification process with at least three lenders. This will allow you to move forward as planned once you find the right home.

3. The interest rate is important but not the only detail to consider. Everybody buying a home wants to secure the lowest possible interest rate. That being said, don’t let this cloud other details that are every bit as important. Here are some questions to answer:

• What kind of reputation does the lender have?
• Do they offer good customer service?
• What is the term of the loan?
• What are your payment options?

When you follow these three simple tips you will find it easy to compare mortgage loans, eventually choosing the one that is best for your purchase.