Shopping Around for a Mortgage

Before you dive in and sign the mortgage papers, make sure that you had done your investigation – shop around for the different mortgage packages that are offered by different banks and lending companies.

You can go about this through two methods:

 

One, you can go to a mortgage broker who will assist you to do the shopping around in finding the best possible interest rates which will depend on your credit score. It is best to hire your own mortgage broker for they would not be biased. There are some mortgage companies who have their own mortgage brokers who will do the steps with you but whom you will have to pay for eventually. At least if you hire your own, you will rest assured that they are not forcing you to go for a particular lending company, he or she will find the best rates for you, objectively.

 

The second method is to look on your own. You can either go to the different banks and lending companies on foot and talk to the personnel about their packages, or you can go online. Searching through Google will reveal that there are numerous sites which help the borrower get the right packages.

 

But you have to remember, you cannot get the real rate unless you give the lender your credit score and they can do a credit investigation on you. Take note though if you are thinking of applying to different lenders, each time you apply, they will charge a certain fee to pay for the costs of the investigation. So if you think you will save money by applying to ten, think again.

 

The approval of the mortgage will cost you too. You will have to include the mortgage broker fees, the underwriting fees, the settlement fees, the lawyer's fees, the stamps, the different taxes, etc. so be best prepared when you go about this.