You can try to get a better rate of interest. Even though most people know that shopping around can often get them a better deal, most don't use this strategy when getting a mortgage. Keep in mind that lenders' interest rates are almost always negotiable, so all you have to do to get a lower rate is ask for it. If the lender thinks you might go to another lender, they will often come back with a better deal.
Learn about your credit history and score. Since your credit history is a big part of whether or not you get a loan, it's important that you don't meet with or talk to a lender or broker before you know about this information. The loan payment will be worse and cost more in the end if you have a bad credit history and score. If you know what's on your report, you won't be surprised when the lender or broker asks you questions. You'll also be able to fix any problems that are on your report.
APR does not mean what you think it means. The APR (Annual Percentage Rate) is a way for the average borrower to compare and evaluate mortgage loans from different lenders. But since every lender figures out their APR in a different way, the end result is a lot of confusion and a number that doesn't mean much. Some lenders figure out their APR by adding in their own fees and costs, while others don't (hoping to illustrate a more attractive loan). Also, things that have nothing to do with the lender affect the APR (size of loan, type of loan, etc.).
The number of lenders you can choose from and the number of offers you get will depend on how many connections your mortgage broker has. Since more than half of all mortgages start with a broker, you should find out as much as you can about that particular brokerage before agreeing to work with them. Find out how many lending institutions they work with and what kind of relationships they have with those institutions. Make sure to choose a broker who has a lot of connections, so you can be sure to get a lot of offers from qualified lenders.
Your monthly payment might be more than what the lender tells you. Keep in mind that when most lenders talk about your monthly payment, they only talk about how much is needed to pay off the mortgage loan. In reality, besides the mortgage loan payment, that payment often includes a number of other things. For instance, most monthly payments include property taxes. Others include insurance for the home. Some payments will have insurance and city fees added on top of them. So make sure you know exactly how much extra money will be added to your payment.
Getting "pre-qualified" doesn't help at all. The pre-qualification is just a statement from the lender that it looks like you meet the requirements for a mortgage. Too many lenders send a pre-qual letter and expect the buyer to use it to shop for a house with confidence. This letter is made based on your conversation with the broker or lender. No official or formal evaluation has been done, so the terms of the final loan will probably be different.
Most of the time, prices are lower in the winter. If you can choose when to start looking for a home, you might want to think about doing so in the winter. Usually, the summer is a good time to sell because buyers with families and small children are in a hurry. They don't want to mess up the kids' school schedules, and it is easier to move when it is warmer outside. This means that buyers will have less time to decide, look for other homes, etc. Usually, if you can buy in the winter, you'll spend less money.
