June 23rd, 2011
In her article “Tips to Make Mortgage Shopping Easier,” Jill Simmons makes some great points for Maine home buyers that we haven’t recently touched upon.
Use Your 30-Day Window. Simmons points out that some people avoid shopping around for quotes because they fear that multiple credit inquiries will harm their credit score. It’s typically true that too many credit inquiries can lower your score. But what people don’t know is that multiple credit score inquiries will show as only one inquiry when they are conducted within a 30-day period.
Therefore, you should wait until you’re sure you’re ready to buy before you begin applying for rates – which leads us to the next tip.
Lender’s don’t need a name to get a rate quote. If you’re just considering a mortgage, rather than looking to make a serious commitment, you can still receive an accurate rate quote without a credit score inquiry. As long as you have a close idea to what your credit score is, then the rate quote should be pretty accurate. Once you find an attractive rate quote and you know you’re serious about buying, you can then give the lender the thumbs up to inquire about your credit score.
Look beyond the rate. With all the talk about historically low interest rates, it can be tough to not get caught up in the numbers. But keep in mind that there are other very important aspects of a mortgage, like the monthly payment, the down payment, the length of the loan, the lender fees and the lender reputation. You need to look at all your different options, and then decide what’s bet for you in the long run.
Hire the right lender. You want to find a lender who can close the mortgage as quickly and efficiently as possible. If you’re a first-time homebuyer, you want a lender who will walk you through the process, and be available for support when you need it. Talk to friends and family members, and find out if they have a lender they recommend.