When it comes to getting a mortgage, Columbus home buyers don’t always shop around for the best deal. But you should! According to Freddie Mac, home buyers who obtain and compare at least 4 mortgage offers save an average of $1,200 a year on financing costs.
When comparing loan offers, few borrowers look beyond the interest rate and the origination fee, but there is more to consider. Mortgage costs include underwriting fees, document preparation fees, processing fees, tax service fees and courier fees. During your comparisons, you may find that a nominal difference in interest is not worth the tradeoff of more expensive fees.
Also check for any “points” in the loan estimates. A point is a form of pre-paid interest, which buys a reduction in the interest rate. A full point is basically one percent of the loan amount. You are not required to pay points, but if you choose to do so, be sure your mortgage comparisons are working with the same point value. (Full point, half point, etc.)
To simplify matters, Bankrate suggests comparing the APR, or annual percentage rate, on your mortgage offers. The APR includes all fees involved with the financing, as well as the interest rate itself. Comparing APR’s on your mortgage offers can give you a look at the bottom line.
Most lenders allow you to roll some, or all, of the closing costs into the loan. Use caution. Rolling in your closing costs will increase your principal balance, and your interest will be charged on that balance.
Before you begin shopping for a mortgage, it pays to have your own financial condition in the best possible shape! The better your credit score and the stronger your down payment, the better your mortgage offers will be. Learn more with our free e-book, “How to Buy a Home like a Pro!” There is no cost and no obligation.
And, if you choose to become our Buyer-Client, we can help you evaluate and compare your mortgage offers, because we provide a fiduciary level of service to our clients!
As Exclusive Buyer’s Brokers, we serve your best interests at all times! Unlike real estate agents and brokerages who represent sellers, as an Exclusive Buyer’s Broker, we only represent you, the buyer, getting you the best price and terms with no conflict of interest at all times.
Understanding this distinction could literally save you thousands of dollars not only on the purchase price and terms, but also on seller concessions and home inspection issues, whether you are a first-time homebuyer or an experienced homeowner!
Contact us with your home buying questions! Remember, we are with you every step of the way…all the way home!
Andrew Show
Exclusive Buyer’s Broker, CEBA-M, MCNE, CSP, PSA,e-PRO, CREM, ABRM, AHWD
Buyer’s Resource Realty Services www.BuyersHome.com
Serving Metro Columbus, Ohio with Exclusive Buyer’s Agents
7100 North High Street, Suite 204, Worthington, Ohio 43085
614-888-4110 | 888-888-4110 Toll Free | 614-839-4110 Fax
