Just as with any other product, buying a home is subject to varying interest rates and conditions. That’s why as a next time home buyer you need to be careful about the deal you opt for. In this article we provide some helpful tips and tricks to help you navigate the housing market to find the best mortgage deal for you.
Here are some tricks to get you started:
1. Contact various lenders: When it comes to finding a mortgage deal, there are several types of lenders willing to offer you competitive rates. For example, there are thrift institutions, mortgage companies, commercial banks, as well as credit unions. All of these will be providing you with varying interest rates, along with negotiable terms and conditions. As a next time home buyer, you need to contact different kinds of lenders. You could even contact a mortgage broker who will act as a middleman to arrange for different transactions between you and the lender. Sometimes the situation may be confusing as certain financial institutions operate both as lenders and brokers. Brokers do not lend any finance; they just negotiate the transactions. Be sure to identify which agencies act as both to avoid confusion.
2. Cost: The next most important consideration is the cost or the rate being offered by your lender. Being a next time home buyer, you need to find the most competitive rate being offered, so that you save money. You are entitled to a no obligation quote from each mortgage lender. This will help you ascertain which is the best deal out of the lot. Also be sure to check if the rate is fixed or adjustable. This will have significant impact on your monthly mortgage payment. For adjustable rates, be sure to ask how it will impact your loan and monthly payment. Also check on the Annual Percentage Rate (or APR) because it usually takes into consideration fees such as broker fees, points and credit charges.
3. Down payment: Usually most mortgage lenders will ask for a 20% down payment on the value of the house. However, as a next time home buyer you need to confirm this so as to be able to calculate your finances and budget accordingly. Some lenders may just require just a 5% down payment.
4. Write down all costs: As a next time home buyer you are entitled to ask the mortgage lender to write down each and every cost associated with the loan.You can then be in a better position to negotiate and bargain on the fees. You may even ask your lender to reduce some of the costs involved to secure a lower rate.
5. Get a survey done: There’s nothing worse than buying a home only to realize later that a significant amount of your savings will go into renovating it. That’s why it’s so important to get a professional survey done even before you buy the house. There are plenty of structural engineers and architects whose services you can hire. They will be able to inform you better on the structural damages in the building. If you know these costs, you'll be able to incorporate them into the loan itself.
6. Tips to negotiate: Being a home buyer is all about acting like you have been there and done that. There are some tricks to negotiate that can help give the impression that you know what you’re talking about.
7.Do not look anxious: This is a dead giveaway, and if the seller comes to know how much you want the home, he might just hike up the rate.
8. Do not lose your temper: This will just rub the seller the wrong way. It’s best to be polite, no matter how stressed or anxious you maybe.
9. Negotiate in person, not on the phone: This helps you get an idea of their attitude based not only on their voice, but on their body language and other subtle details that you would not otherwise be shown on the phone.
10. Always consult with people use trust before making any decisions.
If you'd like help finding the best mortgage deal for you, fill out a short contact form, and a SimplyFinance representative will contact you and introduce you to a mortgage broker that will work with you and search to find the best mortgage deal available.
