A home loan in today’s market has quite a few more hoops to jump through, but the real challenge is determining if you are getting a good loan or getting some loan that is going to be a bad investment.
Your loan is something you will probably be attached to for several years so why wouldn't you shop around for the best rate, APR and fees? Here are some things to consider when shopping for a great home loan:
- How long is the rate fixed for? 5 years? 10 years? 30 years?
- Does the rate of the loan EVER change?
- How much are the fees for the loan? Is there a rebate on this loan? Early termination fees?
- If the loan has mortgage insurance, when does that go away?
This may seem like a lot of questions to consider when you get a loan; however, these questions can save you thousands of dollars on your purchase and 10’s of thousands over the life of your loan. When you get these from 1 lender then I encourage you to compare the fees and loans with another lender.
It's ok to shop around! AND Let them know you are shopping around; they may offer better rates and closing cost fees. Don't settle on the first home loan you find; make sure you are getting the best loan for your needs, both short and long term.