Washington County Weekend Post

Few people are able to walk into a home, like what they see and then pay for a house in cash. In the vast majority of home purchases, mortgages make the dream of home owner- ship a reality. Getting a mortgage requires research and some preparation on the part of borrowers if they hope to get the friendliest terms possible. Homes are substantial, decades-long investments, so it's smart to shop around to find the best rates and lenders available. These tips can make the process of applying and getting a mortgage go smoothly, and may even help borrowers save some money. • Learn your credit score. Your credit score will be a factor in determining just how much bargaining power you have for lower interest rates on mortgage loans, according to the finan- cial resource NerdWallet. The higher the credit score, the better. Well before shop- ping for a mortgage, manage your debt, paying it off if possible, and fix any black marks or mistakes on your credit report. • Investigate various lenders. The Federal Trade Commission says to get information from various sources, whether they are commercial banks, mort- gage companies, credit unions, or thrift institutions. Each is likely to quote different rates and prices, and the amount they're willing to lend you may vary as well. Investigating vari- ous lenders can help you rest easy knowing you got the best rate for you. Lenders may charge additional fees that can drive up the overall costs associated with getting a mortgage. Compare these fees as well so you can be sure you get the best deal. • Consider a mortgage broker. Mortgage brokers will serve as the middle person in the transaction. A broker's access to several different lenders can trans- late into a greater array of loan products and terms from which to choose. • Learn about rates. Become informed of the rate trends in your area. Lower rates translate into significant savings amounts per month and over the life of the loan. Rate may be fixed, though some are adjustable-rate mortgages (also called a variable or floating rate). Each has its advantages and disadvan- tages, and a financial consul- tant can discuss what might be in your best interest. • Discuss points with your financial advisor and lender. Some lenders allow you to pay points in advance, which will lower the interest rate. Get points quoted in dollar amounts so they'll be easier to compare. If you're unfamiliar with points, discuss the concept with your financial advisor. The vast majority of homeowners secured a mortgage to purchase their homes. Learning about the mortgage process can help new buyers navigate these sometimes tricky financial waters. Get the best mortgage financing deal 2B • WASHINGTON COUNTY POST • SUNDAY, JULY 11, 2021 GMTODAY.COM

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