If you're interested in purchasing a home or building, you'll need to obtain a mortgage unless you have enough money to buy the building outright. For most people, a mortgage is the best way to obtain a home.
Mortgage payments typically run for 15 to 30 years. Since they're long-term loans, it's a good idea to shop around until you find a low interest rate on a good mortgage loan. How can you make sure you get the best possible loan? Here are a few things to try.
Before you try to take out a mortgage, remember that you need to have a credit score that is as high as possible. The higher your credit score is, the more likely it is that you'll receive a good offer for a loan. Before you accept any offer you receive, take time to understand current rates and what you might be offered elsewhere. You don't have to take the first offer you receive.
If you're not sure about which home you want to purchase, consider getting a preapproval for your mortgage. That helps you get your offer approved by the seller, since he or she knows you have the money to back it up.
Of course, before you sign any contract, it's a good idea to talk to your attorney and to read the fine print. Since a mortgage is in your life for an extended period of time, you need to know what happens if you miss payments, pay off the loan early or if you want to extend the mortgage in the future.
Source: NerdWallet, "5 Tips for Finding the Best Mortgage Lenders," Steve Nicastro, accessed Aug. 23, 2017