The best way to get a low rate mortgage.

If you are in the market to purchase a new home or you are looking to refinance your existing mortgage to consolidate debt, then you  need to read what we learned about shopping for a mortgage. There are thousands of companies to choose from when it comes to obtaining a new mortgage, but how do you figure out which one to work with and if you are going to get a good deal for your situation. What we learned is that through a little bit of research on the internet and leveraging technology the process of shopping for a mortgage really is not that difficult. First, you need to asses your situation, write down your goals, they will be different if you are purchasing your first home, exploring a purchase of a vacation property or trying to refinance and consolidate your credit card debt. The next step is to interview a few lenders to find out if they offer programs that meet your goals and if you qualify. This process can be a bit overwhelming as all of the lenders will probably try to sell you on why they are the best ones to deal with. In our search for a mortgage refinance we stumbled upon a comparison mortgage site Loannetwork.com. There are a number of similar types of websites where you fill out a form and receive offers from lenders. The internet has made the process of comparison shopping much easier than what was available ten years ago.  When we visited their site they provided us with some great tips on how to compare loan offers, a few of which we can share here:

• When you are comparing mortgage rates, it is very important that you receive the offers within the same time period as mortgage rates can change daily.
• Comparing mortgage quotes is not only about trying to find the lowest possible mortgage rates, you also need to review the lender closing fees, specific loan program and any early payment penalties that may exist.
• Shopping for a mortgage for a second home or investment property may change the loan terms that a lender is able to offer you, so make sure you disclose the property type and loan purpose up front so you avoid any last minute surprises.
• Not all lenders will use the same criteria for underwriting your mortgage. All lenders will look at your credit history, the property loan to value, your debt to income ratios, assets, etc. However, not all lenders will give equal weight as to how they qualify you for underwriting. This is why it is very critical to obtain more than one mortgage quote.
• The larger your loan size, the more flexibility most lenders will offer you. This is a real simple explanation. the larger your loan is, the more money it makes for a lender and they generally will try to work with you to either offer a better deal or be more flexible with you situation.

The number one lesson we learned is that if you want to get the best deal on a new mortgage, then you definitively need to compare mortgage quotes from more than one lender. We ended up choosing a lender that offered a competitive rate and reasonable closing costs, the entire process took less than one month.