Mortgage Shopping Tips

Buying a home can be one of the most exciting, and most nerve
wracking, decisions of your life. There are many different things to consider,
such as, can I (we) afford it, what type of mortgage should I get, should
we buy now or wait for better interest rates, and should we choose a
fixed interest rate or take a chance that rates will go lower?
Buying a home can be a difficult time, but there are a few tips that
can make finding the best mortgage and buying your home a little bit easier.

Figure out how much you have to spend - This includes your down payment,
which should be at least 10 percent of the purchase price of your home.
You should also calculate just how much you can spend each month on a
mortgage payment. Your mortgage payment should be much less than your
net income minus all of your monthly expenses – a cushion is essential to cover any
unanticipated costs.

Assess your own tolerance level - Are you a risk-taker, or are you more
comfortable with knowing what you will be paying each month for the
next three, four, or five years? The answer to this question will help
you decide whether you want a fixed- or variable rate mortgage.

Shop around - There are lenders literally falling all over themselves to
attract new customers, so there are many different mortgage products
offering a variety of great deals. Even if you have been with a bank for
several years, it may save you thousands of pounds to go with another
lender, so do not be afraid to choose the best deal. Mortgage customers
have more power today than ever before, because banks are vying for
your business. Therefore, remember that you are in charge, and can
demand the very best deal:

• Check out the prepayment and re-mortgaging penalties on any mortgage
product you negotiate.
If you want to have the best mortgage deal, you will want to be able to
renegotiate your mortgage whenever you like. Even if you have to accept
a few penalty clauses, you may still be able to save money in the future
by re-mortgaging your home

• Make sure the home you buy is sound - Have a structural inspection
completed in every case to ensure that you are not taking on a home that
has hidden damage. Even if you have a good insurance policy, it may not
cover damage, such as to a roof or patio that is found to have existed
before you bought your home.

There are many things to consider when you are about to buy a home,
so be sure to do your research and shop around for the best deal!