5 Ways to Save When Mortgage Shopping

According to a recent Zillow article.

Did you know that borrowers spend twice as much time researching a car purchase than they do a home loan, even though the average home costs five times more than the average car? It’s true. In a survey commissioned last year by Zillow and Harris Interactive, it was learned that the typical borrower only spends five hours researching their home loan, while car shoppers spend 10 hours.
As a result, borrowers can lose thousands of dollars in mortgage costs due to lack of preparation. To avoid losing out on your hard-earned dollars, here are a few tips to help you take control of the mortgage shopping process:
1. Get your finances in order. Before you even start mortgage shopping, assess your finances. Determine what you can afford. As a rule of thumb, the total cost of your mortgage payment — including any taxes and insurance—should not exceed 30 percent of your take-home pay. You’ll also want to get a good ballpark estimate of your credit score. Your credit score impacts your interest rate as well as your eligibility to get a loan. Currently, one-third of Americans cannot get a home loan because their credit score is below 620.
2. Pick the mortgage type right for you. There two main types of mortgages: Adjustable-rate mortgages (ARM) and fixed-rate mortgages. Adjustable-rate mortgages have fixed rates for a short period (usually 3, 5 or 7 years) and then readjust. These loans are generally considered riskier because the interest rate and payments can increase when the loan adjusts. However, if you are only planning on living in your house for a shorter period, these loans may make sense for you, especially because you’re likely to obtain lower rates.
A fixed-rate mortgage is just that—the rate is fixed. Many people like this type of loan because the interest rate stays constant throughout the period of the loan. With both fixed and adjustable-rate loans you can select various repayment periods. The most common term is 30 years, but if you can afford the higher monthly payments of a 20- or 15-year term loan, you will save money with the lower rate and quicker payoff period. The most important factors in selecting your loan type is the length of time you plan on staying in your home and your risk tolerance.
3. Take advantage of your 30-day window. There is no such thing as too many loan quotes. Borrowers may shy away from getting multiple loan quotes, fearing their credit will be impacted when multiple parties check their credit within a short period of time. However, you have 30 consecutive days in which multiple pulls of your credit score, or “rate shopping,” won’t affect your credit. With that in mind, take advantage of the 30-day window and get as many loan quotes as possible to get the best rates and terms. Note that in order to compare quotes apples-to-apples, it is important to get quotes from lenders around the same time as rates can change daily. It is always wise to double-check the rate you get from a single broker or bank to make sure you really are getting a good rate and that you find a lender that you trust.
4. Compare quotes. Getting loan quotes from multiple sources and comparing those quotes to choose the best loan seems time-consuming. But it doesn’t have to be. Much like what Kayak.com does for travel, there are many websites that allow you to enter your loan request information once and get loan multiple quotes back from multiple lenders, all on one screen.
5. Check the reputation of lenders and brokers. Whether you have already received loan quotes or are researching lenders to contact, do your homework by checking their background. Have they been in the business a long time? If found online, are they accessible? Do they have any third-party reviews and ratings? Reviews and ratings can be an invaluable resource because you can get unbiased feedback from people who have worked directly with the lender.
Remember that shopping for a mortgage could save you thousands of dollars—and who wouldn’t want to do that?
For more information regarding a Oklahoma Mortgage or to Apply online for “Free” Pre-Approval
Log on to our website http://www.zfgmortgage.com
Or Call 918-459-6530

Categories: banks Oklahoma, banks Tulsa, broken arrow mortgage, brokers and lenders, creek county mortgage lenders, First time home buyers Tulsa, home loan Oklahoma, home loan Tulsa, home loans in tulsa area, home loans Oklahoma, home loans Tulsa, home mortgage, home mortgage Oklahoma, home mortgage Tulsa, homes, homes for sale, homes for sale Bartlesville, homes for sale enid, homes for sale jenks, homes for sale Muskogee, homes for sale ok, homes for sale Owasso, homes okc, homes oklahoma city. tulsa homes, homes tulsa, houses for sale Oklahoma, houses Oklahoma, Locate Tulsa mortgage companies, mls Oklahoma, mortage lender in the tulsa area, mortage lender in tulsa, mortage rates in tulsa, mortage rates tulsa, Mortgage, mortgage bank tulsa, mortgage banks in tulsa, mortgage calculator Oklahoma, mortgage company in tulsa, mortgage company tulsa, mortgage edmond Oklahoma, mortgage lender tulsa, mortgage lenders in the tulsa area, mortgage lenders in tulsa, mortgage lenders tulsa, mortgage lending company tulsa, mortgage loan, mortgage loan Oklahoma, mortgage loans, mortgage loans Oklahoma, mortgage ok, mortgage Oklahoma, mortgage oklahoma city, mortgage oklahoma city ok, mortgage rate Oklahoma, mortgage rate Tulsa, mortgage rate Tulsa mortgage calculator Oklahoma, mortgage rates, mortgage rates in tulsa, mortgage rates Oklahoma, mortgage rates Oklahoma city, mortgage rates Tulsa, mortgage Tulsa, mortgage tulsa ok, mortgage tulsa oklahoma, mortgages in tulsa, mortgages Oklahoma, mortgages Tulsa, new home in tulsa, new home tulsa, new homes in tulsa, ok mortgage, ok refinance, okc capital mortgage, okc mortgage, oklahoma, Oklahoma banks, oklahoma city homes, oklahoma city mortgage, Oklahoma finance, oklahoma home loan, oklahoma home loans, oklahoma home mortgage, oklahoma homes, oklahoma interest rate, oklahoma loan, oklahoma mortgage, oklahoma mortgage calculator, oklahoma mortgage lenders, oklahoma mortgage rates, oklahoma mortgage refinance, oklahoma mortgages, oklahoma real estate, oklahoma refinance, oklahoma refinancing, real estate, real estate tulsa, refinance Oklahoma, refinancing mortgage, Rogers County Mortgage Lenders, Tulsa banks, tulsa business consulting, tulsa business loan, tulsa business loans, tulsa federally insured loans, tulsa FHA loans, tulsa home loan, tulsa home loans, tulsa mortage company, tulsa mortgage, tulsa mortgage banker, tulsa mortgage banks, tulsa mortgage business, tulsa mortgage businesses, tulsa mortgage companies, tulsa mortgage company, tulsa mortgage lender, tulsa mortgage lenders, tulsa mortgage lending company, tulsa mortgage lending institution, tulsa mortgage lending institutions, tulsa mortgage rate, tulsa mortgage rates, Tulsa mortgage service details and contact information, tulsa mortgages, tulsa new home loan, tulsa new home loans, tulsa real estate, tulsa realtor, tulsa realtors, tulsa refinance, tulsa rural loans, tulsa sba loan, tulsa USDA, tulsa usda mortgage, USDA Home Loan, usda home loans Oklahoma, USDA rural development programs | Tags: , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , | Leave a comment

Post navigation

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )

Connecting to %s

Blog at WordPress.com.

%d bloggers like this: