clients get the best deal. As a buyer, ensure you’re involved in every step of the deal. Research has shown that most people spend more time shopping for cars than they spend shopping for home loans. As a result, many buyers end up paying more in closing costs or higher interest rates than they might have because they didn’t bother doing enough research or they didn’t adequately shop the mortgage market. The ever-changing rates can confuse almost anyone, and timing is important. One day the rate might be 5%, and the following day it could rise to 6%. Many people overlook the shopping aspect and approach a single lender to avoid going through the “hassle” of looking for the best deal. These buyers could end up with their “dream” home, but it might come at a steep price, such as a significantly higher monthly mortgage payment.
LOCKING IN A RATE
“Obtaining the lowest available interest rate on a mortgage should be every prospective homeowner’s objective,” says Lisa Smith from Investopedia. The reason is simple: Lower interest rates mean lower monthly mortgage payments, which can mean affordability in the short term and significant savings over the long term. Learn and know when to lock in your mortgage rate. Mortgage rates change from day to day, and sometimes within the same day. “While advertising may have lured you in with an impressively low mortgage rate, that rate might not be available months from now when you close on your mortgage,” says Smith. You don’t want to miss out on a great rate or cost yourself a lot of money down the road, should the market take a turn for the worse and you’re stuck paying a higher interest rate, waiting for the market to settle. If you’re concerned about the market in your
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