Your home will probably be the biggest single investment you make in your lifetime. Youll be borrowing hundreds of thousands of dollars and paying interest on that amount for the next 15 or 30 years. It pays to shop around for the best deal.
To compare one loan to another, you need to look beyond the quoted interest rate and understand the annual percentage rate (APR). This is the actual cost of the loan, and it must be disclosed on all consumer credit applications.
Some lenders offer low interest rates but charge fees that lenders charging higher rates do not. By comparing APRs, youll be comparing one loan to another, apples to apples, because it takes into account all of the costs of the loan.
The Benefits Of Comparison Shopping
According to Freddie Mac, getting a quote from just one additional lender could save you an average of $1,500 over the life of a loan. Getting a quote from five different lenders will double your savings, on average.
Not sure which lenders to contact? Do your research. Read a few top lender lists by reputable finance sources. Visit lender websites to learn more about the company and the products they offer. Go over customer reviews to make sure you'll be in good hands after the loan closes.
Rocket Mortgage ® retains mortgage servicing on the mortgages it sells, so youll enjoy the same excellent level of customer satisfaction while repaying your mortgage that you had while applying for it. Its not all about price in comparison shopping.
Many people overlook first-time home buyer loan programs and grants when shopping for their first home because they don't think they qualify or they don't even know these programs exist. ...