5 Things Banks Won’t Always Tell You about Mortgages
The lender or mortgage broker you use to purchase your home can make or break a deal and cost (or save) you a lot of money!
The mortgage process can be a bit like navigating a maze. You can make the right moves and come out at the end with the right loan, the right rate, and the right terms for you, but you’ve got to go in knowing a few things, including these five:
- Shopping around for a loan can save you money by helping you find the best interest rate and terms for your specific financial situation
- Credit score isn’t the only factor that determines your interest rate – income, employment history, and down payment also play a role.
- Pre-approval isn’t a guarantee. The rate quoted during the pre-approval process may not be the final rate offered
- Alternative lenders exist. Credit unions or online lenders also offer competitive rates and flexible terms
- The true cost of your loan. Adjustable-rate mortgages or interest-only loans can result in higher costs over time. Before you sign, make sure you understand your loan and how it works.
Buyers, I don’t want you to be stuck in a loan for 5, 15, or 30 years that isn’t right for you. You deserve more when buying a home, so keep asking and keep pushing until you feel confident in your mortgage (and the people helping you along the way).