4 Ways Mortgage Shopping is Like Dating
Selecting the mortgage that is right for you is a hugely important part of the home-buying process. Committing to a mortgage is similar to starting a long-term relationship: it requires a significant amount of time and attention, there may be a few completely wrong for your prospects to weed out, etc. With the right effort, the end result can be very rewarding.
Since you are potentially committing to be in your new mortgage for 30 years. Having a mindset of looking at mortgage shopping similar to dating could save a lot of headaches, stress, and even money over the life of your new loan. Here are some great dating tips that can also be used when shopping for mortgages.
Don’t Just Settle on the First
Most often, as with dating, it is very uncommon that your first mortgage offer is going to be “the one.” Yet, a remarkable half of all mortgage applicants don’t shop for their best option and just settle with the first loan product they qualify for says the Consumer Financial Protection Bureau.
Learning about different mortgage types, talking with several lenders or having a mortgage broker do so on your behalf, and getting a few different offers can help you to discover a better option that will fit best into your personal financial situation.
Look Outside Your Network
You may have talked with friends and let them know you are purchasing a home or asked who they used to secure a loan, and a friend tells you to go with the lender they used 10 years ago. While they could very well be a great lender, it is a good idea to check out several different lenders all around you. Another great reason to work with a mortgage broker they can be like your speed dating consultant and help you to find all the available options far and wide.
Wait for the One that Meets Your Needs
Everyone has their own tastes, expectations, and preferences. When it comes to dating you may prefer someone who appreciates gourmet food as much as you do and your friend prefers a fast-food junkie that isn’t picky. In. the same way, mortgages are not one size fits all. You are going to be hoping your mortgage offers something else than your friend, because your personal financial needs are different. Don’t just settle to someone else’s preference for your finances. Take your time and decide on what really feels like a good fit for you.
Related: What are closing costs?
Know Who You are Committing To
Discovering the person you are dating is not really who they seemed to be when you met can be heartbreaking and even end the relationship. In the same way it is a good idea to know as best you can who you are dating, it is a good idea to know the company offering you a loan. They may seem to give you the best offer, but actually working with them during the loan may turn out to be a stressful pain. So do your homework on the company as well. Look at their ratings from current and former customers. Read some reviews. Make sure they will treat you well by quickly answering questions and appreciating your business.
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