When you're out shopping for a mortgage, you naturally look into several lenders before you decide on one.
Typically, people's attentions are immediately drawn on the lenders who offer the lowest interest rates.
However, low interest rates should not be the only thing that determines your decision.
For example, a couple who are looking into purchasing North Raleigh real estate and are already looking through North Raleigh homes for sale may have special circumstances involved around their finances which will affect their purchasing power within the next few years.
It's very important that you, first and foremost, understand what situation you are in before you agree to a loan arrangement.
Here are a few examples of things that should help you make up your mind about what loan to get when buying a home.
1.
Think about other fees as well, rather than just focusing on the interest rates.
- Aside from the monthly mortgage you'll pay, you'll also have to think about other fees.
Ask about the closing costs, which makes up a bulk of the out of pocket fees you need to deal with when acquiring a house.
It's important that the lender is transparent about the other fees because these can add up to a lot of money in the end.
In asking for an estimate of the fees, it's also best to ask what the amount of these fees are based on so that you'll know which items can still increase in rate and by how much you can expect them to increase to.
2.
Think about your current financial situation.
- There are a lot of different types of loans which are available for home buyers of different financial situations these days.
There are loans that allow borrowers to use their financial portfolios as a collateral rather than give the required down payment, which could be useful for people who have no liquid assets at the moment.
There are loans that are specifically for people who have bad credit scores.
There are loans for people who want to pay low interest rates now and pay a lump sum at the end of the agreed period.
Different people have different financial situations and needs.
It's best to look into the services of lenders who have the flexibility to accommodate these needs.
3.
Do a little background check.
- Contact the Better Business Bureau and ask if there have been any complaints about the company just so you have an idea if you're in good hands or you'll be in for a rough ride.
It's also useful to check out reviews of lending companies on the internet, although you have to understand that since the internet is largely uncensored and anybody can just publish their thoughts on it, it's better to verify the information you'll get from it before you believe it.
4.
Get a little taste of their customer service.
- Your mortgage is something you'll need to stick with for several years.
You're looking at somewhere between 15 to 30 years, depending on how long your preferred payment period is.
Because you'll be dealing with your mortgage that long, it's important that you can work with people who you know you can establish a long relationship with.
Call their customer service hotline and check out their customer support agents.
If you're happy with how they handle their customers, it's possible that the years you spend dealing with them in the future would be quite positive as well.