5 Tips You Must Know To Get The Best Mortgage Deal

Are you getting the best deal from your mortgage broker? Try investigating on it.

Your mortgage broker could be getting a fat check by a lender to sell you a loan. Although controversial, this is perfectly legal. The one thing consumers need to understand is that a broker is not always looking out for your best interests.

You need to be aware always, despite what the broker may say about getting the best loan for you. Mortgage brokers could get paid two ways. A fee from you and they can also collect a percentage from a lender based on the loan rate. Higher the rate the more they make.

However, don’t despair. There are ways to make certain that you’re getting the best deal from your mortgage broker.

1. Do your homework

This is probably one of the most important tips in obtaining the perfect mortgage deal. Shop around. Some mortgage rates and fees are negotiable so don’t jump at the first deal you hear.
Check with many different types of lenders and keep your options open. Also, consumers should be careful that their broker is offering a nontraditional loan that doesn’t require full documentation of income and assets.

These types of mortgages almost always have high interest rates, and the consumer should be very sure it is the right one for them.

If at all possible to document your income and assets, it’s always worth doing that and getting a more favorable deal.

Don’t rely solely on your broker. An inexperienced one may not explain these types of deals very well. It is always important to understand all fees and interest rates associated with a loan.

2. Bring a buddy

If you’re not an expert at real estate, find help from someone you know and trust. The key is to get someone who isn’t getting compensated. Find people like your friends and family with the professional skills or at least experience in this field or you can turn to a homeownership counselor.

When all is said and done, you should not depend on brokers to find the best loan to take. You should turn to experienced professionals who can steer you in the right direction and give you informed advice.

3. Never be shy

Experts say it is important to ask questions. You need to know everything that comes with the loan, whether it is a fixed or adjustable interest rate, if it includes a balloon payment and how soon you can get an interest rate adjustment.

These are areas you need to understand before signing, otherwise you could end up in a mortgage that is not suitable with your budget and can lead to a payment disaster.
Also, very important, is to be aware of terms such as “no cost” and “no fees.”

In any event, you should always be comfortable and understand the terms to the best you can before you sign.

4. Don't sign under pressure

Always remember you are in control of choosing the best mortgage for yourself. Take a deep breath and don’t stress. Brokers may use various tactics to press the situation for you to sign a contract, but that is a sign of a broker you need to stay away from.

You are the one paying and you shouldn’t sign the papers and leave before you understand everything. When a purchase is hanging, you still have the option of walking away if you feel it is not right.

It is easy to be intimidating at the closing of a deal. With the many pages of loan documents to review and some of the language being unheard of, you are bound to get scared and confused. Don’t be.

And most importantly, NEVER and I mean never sign a contract you don’t understand just to get the process over with. Don’t let fear get the better of you when it comes down to choosing a loan.

5. Know your credit score

Before going into any negotiation, you need to look at your credit score. Knowing your credit score, you have a better judgment in researching loans ahead of time and finding out what sort of rates you can qualify for. If you don't know your score I suggest you get your free credit score.

However, sometimes credit scores can be wrong. If you see problems with your credit report, you need to get that resolved right away. Make the adjustments so that you will feel at peace when making your loan decisions.