Selecting the Right Home Mortgage

The process of choosing the right mortgage can be overwhelming to the average homeowner. The buyer faces mortgage choices from the conventional traditional 30-year mortgage to the graduated-payment mortgage and the adjusted rate mortgage. The homeowner can also consider FHA or VA government loans, owner-carry-back loans, zero-interest mortgages, and wrap around mortgages. Added to that potpourri of options is lots of paperwork, indecipherable terminology, and even more creative methods of financing.  

Comparison Shopping

Though lenders and sellers will regulate the terms and conditions of financing your home purchase, your savvy shopping skill can ferret out the financing and purchase options that best suit your needs. Your first step in comparison shopping is to determine your loan amount and get a quote for a conventional 30-year mortgage. Using the quote as a springboard, check the offers from different lenders. Don’t be surprised if the rates and costs quoted will vary among different lenders in the same market area. Chart the rate, points, and fees of each lender and pare down the list. Since interest rates fluctuate and cannot be predicted with certainty, choosing the right type of loan and lender is a time sensitive process.