We’re explorers by nature. We’re always on the hunt to discover and learn new things. And we can benefit from these experiences.
The digital age made our lives easier and faster, however, we lost the value of exploring. Since we entered the new millennium, we’ve been bombarded with online shopping, faster deliveries – we become satisfied with getting what we want at a quicker pace.
While this may be beneficial for some, when it comes to finding the right mortgage, we must go back to our roots and explore.
For one thing, exploring all the information and examining the options out there can save you a ton and give you peace of mind.
Don’t be satisfied with just one option and immediately sign over 20+ years-worth of your money just because you’re in a hurry to get into your new home.
In the real estate world, this is what we call, “mortgage shopping” and we’ll lay down some ground work why you should be doing this before committing to a mortgage loan.
Have the Upper Hand
Have you ever done bargain shopping? Well, the beauty of bargain shopping is when you know what you want and you shop around the marketplace comparing prices and bargaining with sellers.
Since you know the price of that item, you can bargain with the seller, comparing their price to other vendors. Often, vendors will negotiate with the price that you want rather than them losing a sale.
It’s a similar experience when it comes to mortgage shopping; you hunt for different lenders and their offers. When you have all the information you need from various lenders, you can easily analyze which deals work best with your budget, monthly repayments and amortization.
Be knowledgeable and confident with your negotiations because your household budget depends on this and even more so, an entire lifetime of earnings and savings.
As mentioned, when you shop around for your mortgage, you may receive a bigger savings upfront and in the long run.
According to Bankrate.com, saving around $2,500 may not mean that much to most people but considering that some people struggle with coming up with their initial down payment, that $2,500 amount is money in their pocket.
Not all lenders have the same rates and offers which means that you have the advantage of looking for a number that works for you.
Some may require a 20% down payment as part of your loan while others may require less. Others might include the closing fees in your loan and some may not. These are the things that you should look out for when mortgage shopping.
The best way to do it? Dig into the mortgage offer details!
Meet with your broker and have an in-depth discussion with their recommendations. Be honest and transparent. Lay all of your cards out on the table and don’t be shy with asking questions.
The Personal Touch
Just like the relationship that you’ve developed with your family doctor or lawyer, it pays to have a good relationship with your broker. Once entering a mortgage loan, maintain the relationship with your broker and don’t be afraid to ask any questions as they come up along the path of homeownership. This should be a life long relationship!
From your very first meeting together to all the way to retirement, your broker should be with you every step of the way.
You’ll therefore learn more about their business philosophies (i.e. how they conduct their business), how true they are to their word and if they’re willing to go the extra mile to give you quality service.
By meeting different brokers, you’ll have a sense of who would work well with you in the long run.
Find that Trusted Mortgage Broker
Mortgage shopping can be a daunting task, but someone can help you ease out the legwork and push that shopping cart with you.
Your Mortgage Broker already has a wide network of lenders that would match your requirements. However, having a Mortgage Broker doesn’t ease you of the responsibility of making the hard choices.
As a homebuyer, it is still your responsibility to check out the options that your Mortgage Broker will provide and review the information handed to you. On the bright side, they’ll be there to guide you should you have any qualms or questions and always be there to lend a helping hand.
Daisy Raouph, CLU, CHS, specializes in mortgage financing solutions and financial services. A Mortgage Broker and Financial Security Advisor with over 30 years of experience in financial services. Contact us today to review your mortgage financing options. We can help!