Monday, May 22, 2006

Keys to Smart Mortgage Shopping

Shopping for any major purchase can be difficult. Shopping for a mortgage is no exception. It is not something you do very often and can be very confusing. It's common to ask about rates, but you'ree not getting the full story with just that information.
Many lenders advertise low fixed rates to get borrowers to call them. Yet few consumers qualify for these rates. Many times the programs are not as the appear to be at first glance. Many are very short fixed rate periods. Rates also change constantly. Comparing what several lenders offer on different days may not give you an accurate picture of which lender is providing the best prices.
First you must determine which type of loan best suits your needs and situation. Do you need a fixed rate loan or an adjustable loan? How long will you own the home, can you use a 3, 5, or 7 year product or would you prefer the standard 30 fixed rate loan? All are questions someone must help you answer before you can accurately compare pricing.
Fees associated with obtaining a home mortgage - from the appraisal to legal fees - also add to a mortgage's cost. Points can also be added to a mortgage's cost so two identical rates can have two totally different costs.
It is crucial to be able to discuss your needs and wishes openly with a loan originator who is concerned with your best interests. You can always count on me to look out for your best interest, answer your questions, show you options, and help you make a borrowing decision you'll be happy with for years.

Joe King - Loan Originator
The Mortgage Company Inc.
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