Mortgage Refinancing: Shop Around for the Best Loan And Save

Everyone likes saving money and finding a good deal, why should your mortgage be any different? Many homeowners take the first loan offer they receive without comparison shopping. These are the homeowners that overpay thousands of dollars and probably don’t even know it. Here are several tips to help you comparison shop and find the best mortgage loan for your financial situation.

If you are in the process of applying for a new mortgage it pays to shop around from a variety of lenders and brokers. Your bank or credit union may not provide you the best deal for your mortgage. If you neglect to shop around before signing for a mortgage you could end up overpaying thousands of dollars for the financing. Before you start shopping for a new loan you should familiarize yourself with mortgage terminology and how the process works. If you need to brush up on mortgage terminology there is a free mortgage guidebook you can register for at the end of this article.

How do you shop for the best mortgage offer? The Internet is an excellent tool for comparing lenders and mortgage offers. When you compare mortgage offers it is important to use more than the interest rate or the Annual Percentage Rate to determine the better deal. When mortgage lenders receive your application they are required in the United States to provide you a standardized list of expenses called a “Good Faith Estimate.” This Good Faith Estimate lists all fees associated with the mortgage loan including closing costs. Once you submit your application to a lender you are not obligated to take out a mortgage until you sign the loan contract; use this time before closing to choose which lender has the best all around offer using the Good Faith Estimate.

You can learn more about comparison shopping for the best mortgage and avoiding common mortgage mistakes by registering for a free mortgage guidebook.