As you know, it’s important to get pre-qualified for a mortgage before you seriously begin the home buying process. Having financing in place will allow you to make a better offer compared to those who have yet to qualify for a loan.
Did you know you can comparison shop for loans? Sometimes people don’t realize that they can save thousands of dollars over the course of their mortgage simply by understanding a vitally important piece of information when comparing loans.
When shopping for loans, don’t get locked in on how low the interest rate is. While one loan may have a better interest rate, it may also include fees which could outstrip the benefit of the lower interest rate. Instead, look for the APR (Annual Percentage Rate). An APR includes fees and costs as well as the interest rate and presents the entire cost as the true APR.
If a lender won’t supply you with a loan estimate including an APR, don’t consider them as a candidate for a loan. Legitimate lenders must disclose this information, and a failure to do so is a reason to run for the hills!
I hope this helps. If you have any additional questions, or would like more information about how to shop for your mortgage, please get in touch with me directly