Pinpointing the right home mortgage option in Phoenix, AZ may feel like a Titanic task. Who to trust when it comes to such an important decision may feel difficult, especially with so many options available. But taking the time to shop around for the right home loan can save you thousands of dollars in the long run.
So how do you know you are getting the best home loan to fit your needs? Here are five steps you can take:
Shop Around Without Affecting Your Credit Rating
Don’t be afraid to get a few quotes from local Phoenix mortgage lenders as well as national providers. You can always start with us, but we encourage our clients to seek as many quotes as needed to feel like they can make an informed decision. You have a 30-day window from the time you first have your credit checked to seek other offers without negatively affecting your credit score due to multiple screenings so take advantage of this time and shop around.
Consider All Available Loan Types with Your Lender
There are several types of home loans available. You may qualify for one of the numerous, money saving government loans, such as an FHA or USDA loan, allowing you to purchase with little or no money down. You should also explore the benefits of a fixed-rate vs. adjustable-rate mortgage. Your lender will be able to discuss each loan type as well as your financial requirements to make sure the loan is aligned with your goals.
Explore Buying Down Your Interest Rate
You can shave interest points off your mortgage by paying for discount points on your mortgage. You pre-pay the money up front in exchange for a lower interest rate over the life of your loan. This only makes sense if you have the upfront cash and plan to stay in your home for an extended period, but it is worth discussing with your lender to determine if it would be a prudent option.
Understand Your Closing Costs
The government requires the lender to provide a good faith estimate (GFE) three days after the loan application. Review the closing costs and be sure to ask what they are. Don’t hesitate to negotiate, ask for reduced fees and see what charges you may be able to whittle down.
Local Is Often Best
Personalized service can be a big benefit when you are working on a significant transaction. Look for a mortgage lender with a Phoenix branch and be sure to read local reviews about the mortgage company you are considering.
At First Option, our loans are custom built to the requirements of Arizona law and regulation. Our Phoenix Mortgage professionals will be delighted to serve you!
If you’re currently planning to purchase, refinance, or learn more about mortgage rates, simply fill out our Fast Response form or give us a call at 888-644-1999. Our mortgage professionals would love to discuss your needs.