Read This Before You Sign That Dotted Line on Your Mortgage Agreement



Shopping for a mortgage is one of life's necessities that is never fun. However, it pays big dividends to be an informed homebuyer. Here are three things to consider before you sign on that dotted line of your mortgage agreement.


Did You Shop Around?

Not all lenders are created equal. In addition to the mortgage rate, different vendors vary greatly when it comes to loan origination fees, points, and mortgage insurance premiums. Although it will require a lot of paperwork and attention to detail, it is imperative that you shop around for the best mortgage terms. If you do not want to deal with individual banks, you can contract the service out to a mortgage broker who will do the shopping around for you. Even the smallest rate difference can save you thousands of dollars over the life of your loan. Do not leave this big of a financial commitment up to chance.


Did You Try to Negotiate?

According to City Creek Mortgage, interest rates are something that most companies keep secret. This is because often they will offer one closing cost and rates to a signer, then change it completely for another. While this lack of transparency makes it more difficult to know if you are getting the best rate, it does open the door for you to negotiate. Being firm with what you want will yield you the most savings. You also have to be willing to walk away and to find another lender if you do not receive the rates that you think you can get somewhere else.


Did You Consider All Elements of Your Budget?

Owning a home is more than just having to pay a mortgage payment every month. In addition to this large chunk of cash that you are responsible for paying each month, you also need to consider the additional costs of home ownership. Some of these costs, such as home insurance and property taxes, will likely be rolled into your mortgage payment. Mercury Insurance suggests getting an appraisal to determine just how much insurance coverage your home needs. However, there are other costs that may have slipped your mind. Be sure to keep in mind utility bills, lawn maintenance costs, and homeowners’ association fees.


Mortgages are something that you shouldn’t take lightly. A mortgage is likely to be the biggest financial commitment of your life. Before you make this important decision, it is crucial that you do your due diligence and examine all of your options.


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