How to choose your mortgage lender?
How do people typically choose their mortgage lenders?
- It could be through family, like an uncle or aunt;
- It could be through their first or current bank that they’re loyal to,
- It could even be because they simply like the banks’ brand colours!
That doesn’t seem too good, considering how important this decision is, right? Here’s now Mortgage Delivery Guy says YOU should approach this situation.
4 Questions you should ask your mortgage lender:
- How are the penalties calculated in case of an early pay out?
- What are the associated conditions with the mortgage rate they are offering?
- What type of lien is put against your homes title – Collateral or Standard?
- How knowledgeable is your mortgage advisor?
The questions are designed to evaluate your bank/lender in further detail. However, remember many things depends on your credit, income, down payment, short and long term plans, level of flexibility you would like to have and so on.
Thanks to Nerd Wallet, here are 5 additional tips to help you in your quest:
- Get your credit score in shape. The higher your credit score, the more bargaining power you’ll have. Know the mortgage lending landscape.
- Always ask about the associated terms and conditions with the mortgage rate you are being offered.
- Ask the right questions. Find out about communication, fees and requirements.
- Read the fine print. Principal and interest payments aren’t the only costs of home ownership.
- Always ask how your bank will calculate the penalty if you decide to pre pay your mortgage before completing your signed mortgage term period
The truth of the matter is that anyone can get you a mortgage, but not everyone will go that extra mile to listen to your situation and come up with a highly-customized mortgage solution which encompasses your needs, and exit strategies all in mind.
Just remember – this is the biggest debt (hopefully!) of your life. Know everything before you sign on the dotted line, my friends. Your Time.
If you have a bunch of questions buzzing through your mind right now, feel free to give me a call at 1-800-808-1613