How To Research The Best Mortgage Deal

How To Research The Best Mortgage Deal

Buying a new home is always a big undertaking. While you may be worrying about whether or not the home has enough bedrooms, a place for a home office, or is near a good school, you’re probably also considering how you’re going to pay for your new home.

If you’re like the vast majority of buyers, that means a mortgage. But searching for the best mortgages can be daunting. There are several types of mortgages out there, and you want to be sure that you make the right call. Since many mortgages are paid off over a 30 year period, this a decision that you’ll need to live with for years to come.

So, how do you find the best mortgage deal for you?

First, you’ll want to make sure that you have a good credit score. Try to improve your credit score if it’s not already good, since that will give you a better chance at getting a low interest rate. You can find tips to improve your credit score here.

Once you’ve got that taken care of, it’s time to compare rates. Like with anything, it’s best to do a little shopping around to find the best deal on your mortgage. Try checking a mortgage comparison site like this one, which compares rates among the major mortgage lenders in the UK.

The two main types of mortgage are fixed and variable mortgages. Fixed rate mortgages give you the same interest rate locked in over the life of the loan, while Variable mortgages usually have a low interest rate for the first few years and then adjust to the standard market rate. Depending on how the economy is doing at the time, this can be bad news for your monthly payment.

An variable mortgage can be a good choice if you’re only planning on staying in a house a few years, since you can take advantage of those low initial interest rates and then sell the house. Likewise a fixed rate mortgage can be a safer bet for a home you intend to stay in long term, and can also be simpler to understand for first time buyers.

Aside from comparing different mortgage lenders online, you can also ask friends and family what their experience with different lenders have been. It can also be helpful to read online reviews or to ask for a referral from your real estate agent. This is a major decision, so don’t rush your research.

You should also pay attention to how you are treated by lenders that you contact either virtually or in person. This can set the tone for how they’ll interact with you in the years to come. Be sure to interview them thoroughly before committing, asking about how long they take to respond to client messages and to approve loans, as well as what fees you’ll need to pay at closing and if there are any they’re willing to waive.

How did you find your last mortgage lender? Let me know in the comments below.

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Disclosure: This is a collaborative post.