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

The post Columbus Home Buyers, Shop Around for your Mortgage! appeared first on Columbus Ohio Real Estate | Buyer's Resource Realty Services.

• 65% of respondents believe that homeownership is a proud accomplishment.
• 72% think that now is a good time to buy a home.
• 9 out of respondents10 prefer home ownership to renting.

Here’s where the misconceptions come in:

About 67% of potential buyers believe they needed a “very good” credit score to buy a home. They defined this as a score of 780 or better, which is much higher than necessary. For example, FHA mortgages allow credit scores in the mid-to-low 600’s.

36% of respondents assumed that a 20% down payment is always required. Again, this is higher than what is actually needed as a minimum. FHA loans allow down payments as low as 3.5%. Conventional loans now have down payment thresholds as low as 3%.

The 20% down payment comes into play when you wish to avoid mortgage insurance. See our blog post on the topic of Private Mortgage Insurance and Mortgage Insurance Premiums.

These responses echo the buyer confusion revealed by prior surveys. In a recent Housing Wire report, 42% of prospective home buyers said they knew very little about financing a home. We highlighted some of these earlier surveys in our April 30 blog, “Ignorance Isn’t Bliss When Buying a Home!”

Why do misunderstandings about the home buying process and mortgage financing persist? Likely because most real estate agents represent home sellers, and do little, if anything, to offer quality information to home buyers. Especially to first-time home buyers, who may be deemed as “unprofitable” clients. Even in cases of so-called buyer agency, few agents provide any type of financial guidance.

Fortunately, we’re here to clear up the confusion! We offer a free, no-obligation Buyer Conference that looks at your financing options. We explain the pros and cons of each mortgage program, and how each program affects your mortgage payment and closing costs.

We also help our Buyer-Clients evaluate financing offers, and identify the best lender and program for your individual needs. While most agents simply refer buyers to a lender, our fiduciary duty to you goes much farther!

As your Exclusive Buyer’s Broker, 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
Broker, CEBA, CEBA-M, CNE, CSP, ABR-M, e-PRO, GREEN
Buyer’s Resource Realty Services
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

The post Home Buying Survey Reveals Common Misconceptions appeared first on Columbus Ohio Real Estate | Buyer's Resource Realty Services.