About 65% of all homeowners have a mortgage, making them anything but irrelevant. And with house prices thought to rise by 2% to 6% in the next few years, mortgages will become more and more in demand. It seems like mortgage lenders can be found around every corner you turn, but they won’t all be worth your time. When looking for the best mortgage companies, here are five things you need to consider.
- Rates: As you might guess, one of the first things to compare between companies is rates. Look through the mortgage rates your top choices offer to figure out who is offering the best deal and who is preparing to rip you off. However, this does not mean you should always go with the lowest rate if it belongs to a company that is not worth your time.
- Downpayment: On the topic of money, you also need to consider the downpayment each company requires. Usually, mortgage down payments average 3% to 5%. Figure out what you are capable of putting down at the moment, then check out what each company is asking for as the downpayment. This will mostly come down to what you are willing to or want to pay at the given time, and companies may be eliminated if they ask for a downpayment that is higher than what you are planning on putting down on the spot.
- Experience: Next up is to make sure all of the best mortgage companies in the running are on the same page as you. Companies can offer a variety of different services, and you want the mortgage company you chose to not only be able to provide what you need but also to be experienced in this field. If you are about to buy your first home, look for someone who has worked with other first time home buyers before. Whatever your situation, the company you choose should already have experience with it.
- Reviews: This is one place where reputation really does matter. Don’t be afraid to shop around mortgage companies, talking to each one but also researching up on them independently. What past customers have to say about a company can be a make or break factor. If the company has a bad reputation, there is reason to be cautious about hiring them. You don’t want to deal have anyone less than the best helping you deal with money.
- Fine Print: This is the one many people are dreading, but you need to read the fine print! This is critical in all parts of life, but when signing any kind of agreement with a mortgage company make sure you have read everything, no matter how boring it might be. This is the only sure way to avoid unexpected fines or any other unpleasant surprises. Read the fine print, and even compare what each company says if you want!
Searching for the best mortgage companies out there is anything but easy. But you can make this stressful time go a little smoother if you consider these five simple things when investigating companies!
