Shopping Around for a Home Loan

couple-with-laptopShould you Shop Around for your Home Loan?

While you may be excited to start shopping for homes, finding a lender and becoming preapproved is an essential beginning to the home buying process. While you want to lock down your preapproval, it’s important that you find the right lender. According to the CFPB (Consumer Financial Protection Bureau), 47 percent of homebuyers don’t compare lenders*.

While considering several lenders is a smart idea, you must also remember the lowest rate offered doesn’t always represent the best choice. There are lenders who may offer you a lower rate and not be able to close your loan on time, which may cost you additional time and money.

Additionally, interest rates often fluctuate and lenders’ fees can vary. In the long run, you’ll want a lender with a range of loan programs, and even better, expanded guidelines that could help you qualify. Experience and the skills to restructure a loan if necessary are also important factors for closing on time.

There are many things to consider when shopping around for your home loan. After all, this is one of the largest investments you may ever make. While comparing and negotiating rates and terms may sound taxing, making an educated decision is imperative. Working with an experienced mortgage professional will assist you in obtaining your ideal home, and mortgage loan, confidently.

*Source: http://www.consumerfinance.gov/about-us/blog/nearly-half-of-mortgage-borrowers-dont-shop-around-when-they-buy-a-home/

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