If you are planning for a mortgage loan, then before going to market and shopping for it, have a look at this to do list before buying a mortgage loan.
- Gather data from all the sources and referrals available: Approach all the possible sources and refer people around you to get the basic knowledge about the product. Also be aware of your credit history and credit score. Try to improve your credit score before availing any loan, if it is not good. See how:Some-tips-boost-loan-credit-score. Make an informed conclusion of loan terms and loan program to want to go for after gathering all the information.
- Contact a mix of financial services: Always choose a financial advisor who will introduce to multiple products from different financial bodies according to your requirements. It involves various factors like interest rates, Loan amount, tenure, etc. involved while deciding the feasibility of the Loan. Any financial product cannot be judged based on one of these factors. Some banks may offer you more loan amount, but others may offer you lower interest rates.
- Decide you lock-in-period: Plan when you want to close your mortgage loan. Since interest rates, also vary according to your loan lock-in period. More the lock-in period is, the more will be the rate of interest. It is wise to inform your lender well in advance about your loan closing strategy.
- Confirm the fees: There are many hidden costs and conditions associated with a financial product which even increases the risk of buying it. This is the reason you should not get trapped by advertisements offering you cheap rate of interest. Because it may include other fees and charges that will cost you even more than the other products in the market. It is always advisable to understand all the fees for available products in the market and choose the best one among them after comparing them. In general, a mortgage offering lower interest rate has higher charges.
- Catch the lender soon: as mortgage property rates regularly vary, it is suggested to call the loan provider the day you have decided to avail one. If you delay in taking loan, then you may have to do all the above-mentioned analysis once again.
Once you have planned and gathered the information regarding your loan, follow these steps to save money on mortgage loans.