Buying your first property is both exciting and daunting at the same time. It is certainly exciting because you are hitting another milestone in your life. However, there are so many things to do before you can own the property, from choosing the right house to buy and getting the papers in order to securing the best mortgage loan to finance the purchase.
The latter is a big task on its own. You now have more mortgage loans to choose from, each with its own offers and advantages. You also have more lenders to work with now that the property market is booming again. Before jumping head first and applying for a loan, make sure you keep these important tips in mind.
Try Getting a Mortgage Loan Preapproved
Getting a mortgage loan preapproved – even before you start searching for properties to buy – is always the best way to go. There are plenty of benefits you can gain from having a mortgage loan preapproved by the lender of your choice.
For starters, you have more time to compare mortgage loans and negotiate better deals on them. You can also review deals from multiple lenders to find the most valuable one in the long run rather than comparing mortgage loans based on their short-term benefits and discounts.
Getting the mortgage loan preapproved lets you have a clear budget before you start looking into properties to buy. You can limit your search to houses that are within the preapproved mortgage principal range, making the entire search more effective.
One added benefit of getting preapproved is quick settlement. Since you don’t have to apply for a new mortgage once you find the right property to buy, you can offer quick settlement to the property owner and have better leverage when negotiating for the price of the property; that’s a big saving opportunity right there.
Check the Lender
Choosing a mortgage deal that benefits you the most is important, but you must not neglect reviewing the lenders behind the deals you are comparing. The mortgage lender you work with is just as crucial as the mortgage loan you use in some respects.
When working with a reputable mortgage lender with good history, you know that you are in safe hands. There are lenders who will work with their customers closely and working with this type of mortgage lenders means you will have the help you need should you run into issues repaying the loan.
You can also choose between large mortgage lenders – usually for their lower interest rate and better deals – and smaller lenders who treat you in a more personal way. Smaller mortgage lenders are now competing with the bigger financial institutions by offering personalized services; you have a lender that knows you by name and advises you every step of the way, making the whole process less daunting.
Don’t hesitate to ask for recommendations from friends and relatives as you compare mortgage deals. It is also a good idea to talk to those who are using the mortgage loans that you want to apply for, just to get a better first-hand view of what to expect when you do use the loan.
If you are working with a real estate agent, you can also ask the agent for some recommendations. Keep in mind that some real estate agents now partner with banks and lenders, so they might recommend mortgage loans from those lenders only.
The one thing you don’t want to do is going for the mortgage loan recommended by your real estate agent without looking into other deals available on the market. That brings us to our next tip, which is….
Always Compare Your Options
As mentioned earlier, you must always look into as many mortgage loan deals as possible before making up your mind and applying for one. There are quite a lot of deals and special offers too, and the best way to find a mortgage loan that benefits you the most is by comparing those deals.
Use the online search tools and quote aggregators available today to help you get quotes from multiple lenders. While searching for local mortgage loans, it is also highly recommended to contact the lender directly and ask for a better deal; don’t forget to mention that you are comparing options to get a better offer.
Comparing mortgage loans help you understand each deal better. Some loans are designed to benefit you early by offering discounts and fixed introductory interest rates. Others offer lower costs throughout the loan’s term, so you actually save more in the long run. Get into these details and you will find the best mortgage loan to take out in no time.
Yes, applying for your first mortgage loan is daunting, but that doesn’t mean you will run into issues while trying to buy your first house. Now that you have these tips in mind, you can easily spot the best mortgage loan to use for financing the purchase of your first property.