The mortgage secrets the banks don't want you to know
Buyers, please. Can you spare a second? We need you to hear this.
We talk to buyers all the time after they’ve locked in a mortgage with a bank. When they share the details of their loan, we sigh - because we know they could have gotten a better rate or terms or loan if they only knew the questions to ask and places to look. And now it’s too late (at least this time around).
As agents, we don’t know what else to do other than talk to buyers wherever we go and put accurate info out there with the hope it reaches as many people as possible. So here’s us doing that.
You see, the mortgage process can be a bit like navigating a maze. But you can make the right moves and come out at the end with the right loan, the right rate, and the right terms for you. You just need a little guidance.
But you’ve got to go in knowing a few things, including these five (that the banks won't always tell you):
• Shopping around for a loan can save you money by helping you find the best interest rate and terms for your specific financial situation.
• Credit score isn't the only factor that determines your interest rate - income, employment history, and down payment also play a role.
• Pre-approval isn't a guarantee. The rate quoted during the pre-approval process may not be the final rate offered.
• Alternative lenders exist. Credit unions or online lenders also offer competitive rates and flexible terms.
• The true cost of your loan. Adjustable-rate mortgages or interest-only loans can result in higher costs over time. Before you sign, make sure you understand your loan and how it works.
• Don't let not-perfect destroy good enough. Remember that buying a home is (for most people most of the time) a long-term proposition. The market and your personal financial situation may require you to compromise in the short-term, but markets change, your financial situation will change (hopefully for the better) and refinancing is always an option.
Buyers, we don't want you to be stuck in a loan for 5, 15, or 30 years that isn't right for you. You deserve more when buying a home, so keep asking and keep pushing until you feel confident in your mortgage (and the people helping you along the way).
If you need help finding a local lender or have questions about buying, reach out. That's why we're here.