Getting a mortgage can be overwhelming, so it is sometimes tempting to choose a lender that can offer you a loan instantly. While this will enable you to finance a new home, it is important to be sure that you are dealing with a reliable lender or mortgage company.
It is best not to accept extremely appealing offers without getting a second opinion or considering loan products from other lenders.
Mortgage brokers in Salt Lake City such as the Altius Mortgage Group shares how you can protect your finances and get the right home loan.
- Compare and shop around. Consult different lenders to determine the most suitable mortgage for you. You can then compare their offers or similar loan products to see which one has the most reasonable mortgage interest or monthly payment.
- Learn about prepayment penalties. Ask your lender if the loan has penalties if you decide to pay off your mortgage early. If yes, you may want to know ask about other loan products that do not require prepayment penalty.
- Find out all additional fees. Be sure that you are aware and you understand all fees included in your home loan. If there are items that you do not understand, ask your lender to explain them in simple language. Do not sign any document until you fully understand all it entails.
- Beware of too good to be true offers. If a lender offers you a low-interest rate despite having credit score issues, do not just accept it immediately. Note that a good credit history is a major requirement if you want to get approval, along with low-interest rates.
- Be sure the documents are complete and accurate. Do not sign documents with blank fields or incorrect information. Also, beware of lenders telling you that it is okay to falsify information or submit inaccurate documents just to qualify for a certain loan.
Learn more about the different types of loan as well as their pros and cons to make an informed decision. It is also a good idea to make yourself an attractive borrower by improving your credit score and saving more for a down payment.