If you're shopping for a mortgage, we'd love to help. Here are some tips we've complied to get you started:
1. Know the difference between a mortgage lender (like Webster) and a mortgage broker.
Mortgage brokers do not lend money; they find mortgage lenders for their customers. As a result, they also charge a fee. Also, mortgage brokers don't always make it clear that they are brokers rather than lenders, so be sure to ask questions when you’re shopping around for a mortgage.
2. Shop around using the same loan amount, term and type so you can effectively compare mortgages.
Also, for adjustable rates, ask mortgage lenders to calculate how much your monthly mortgage payments will be a year, 5 years and 10 years from now.
3. Don't assume credit problems will disqualify you from a mortgage.
Many mortgage lenders will still negotiate a well-priced loan if you have minor credit problems due to hardship, illness or temporary loss of income.
4. Remember, mortgage prices change daily.
To accurately comparison shop, you have to compare mortgage terms on the same day. If you need time to review your options, shop on Fridays, since those mortgage prices will generally hold until Monday.
5. Lock in your mortgage rate.
Once you've shopped around for the best mortgage rate and negotiated the terms of your mortgage, ask for a written lock-in to protect you from an increase in the rate while you complete the mortgage process.
6. Know what type of down payment and mortgage you can honestly afford.
Calculate your monthly expenditures to make sure you will be able to pay your mortgage, taxes, insurance, maintenance and utilities for several years. Like all good shoppers, you don't want to spend more on a mortgage than you can afford.
Check out these helpful blog posts:
- A Peace of Mind Mortgage Guarantee That's Worth $1000
- Should You Refinance Your Mortgage?
- What You Need to Know About Getting A Mortgage
- First Time HomeBuyers Video
All loans subject to credit approval.