Shopping for a new home doesn’t just entail looking for the perfect location and the right number of rooms to meet your needs. For many people, the purchase of a home will also mean that it is necessary to shop for a home mortgage.
But with so many potential options that are available from a wide array of different banks and lenders, how to you go about finding the best home mortgage for your specific needs?
First off, just as you would likely do before making any other type of “big ticket” purchase, it is key that you obtain information from several different lenders before you sign on the proverbial dotted line.
When doing so, be sure that you review the details about all of the costs of the financing – not just the interest rate alone. For example, some of the other factors that can make a big difference include the following:
- APR (Annual Percentage Rate) – The loan’s APR, or Annual Percentage Rate, will take into account not only the interest rate itself, but also any points that you may be charged for obtaining the loan, as well as any broker fees, and various other charges that you may be required to pay – all expressed as an annual rate.
- Fixed or Adjustable Rate – It is also important to know whether the loan will have a fixed or an adjustable interest rate. If, for instance, it is fixed, then your monthly payment will typically stay the same over time. However, with an adjustable rate, the amount of your payment can fluctuate – and if the rate goes up, you payment will also follow suit. Here, you should also be sure to inquire about how and when the rate may adjust, and whether or not there is any “cap”, or maximum on how much the rate can rise.
If you’re in the process of shopping for a new home and you have questions about how you can obtain the best mortgage, give us a call. We can help you weave your way through the home buying and mortgage shopping process so that you won’t be hit with any hidden surprises along the way.