How to save money on a mortgage

Are you thinking of buying a home or refinancing your home? If so there are things you should do if you want to save money and it takes a smart consumer to ensure you save every dollar you can!

Instructions

Difficulty: Moderately Challenging

Things You’ll Need:

• Time and patience
• calculator
• computer

1. Your first step in getting a mortgage is to shop and compare. These days all you hear is negative about mortgage brokers but the truth of the matter is and (in my opionion why banks so hate them) is that mortgage brokers shop lenders and the right mortgage broker will save you money and save your credit from being pulled several times! I recommend that you shop a mortgage broker and your local bank. Let them know you are shopping- you will find that if you are upfront they will be more competitive!
2. Ask each lender to print you a Good Faith Estimate and a Truth in Lending. Then sit down and compare the programs- these documents will tell you what you are being charged! The Good Faith Estimate will itemize each charge you will pay to obtain your mortgage. If you have any questions call your lender and ask them. Once you have found the loan you want to pursue call up your lender and ask for additional discounts to earn your business!
3. Don't forget to shop for your home owners insurance. You will want to sit down and decide exactly what you want your insurance to cover then shop several insurance companies for that specific policy (most companies will give discounts if you combine your auto).
4. ONce you have decided on your home insurance policy, then you will need to decide which lender you want to use. Using your good faith estimate decide which lender saves you the most and read your fine print. Your mortgage is the most expensive loan you will more than likely take out in your life.. so take your time and read over all your documents. Continually ask your lender where you can save money and question charges. Your lender should have the same goal you have.. saving you money!

Tips & Warnings

• If you are using a realtor - don't just go along with the lender they refer you to! Make sure you still shop lenders. For a preapproval you need one lender to say they will loan you the money, it doesn't mean that is the lender you need to go with!
• If you are using a lender and aren't comfortable, go find one you are comfortable with. You are the boss when it comes to your mortgage, if your needs aren't being met, don't be afraid to look elsewhere!
• Listen to your lender- if your lender tells you to avoid this or that make sure you heed that advice. Your loan isn't guaranteed until you at the closing table.