Must Know Mortgage Info: It’s About the Math and the Facts

When it comes to having the best experience with borrowing money for a home, the most important part of the formula is knowing the math and the facts. Todd Gydesen, Mortgage Broker with Vantage Mortgage Brokers, has the longevity and methods to help you make the right decisions. In today’s world having experts who have lived through much tougher times is the only way to go. Sit back, listen, and learn from these well-seasoned professionals in this week’s episode of The Portland is Home Team Talk Real Estate, (and Mortgages!)   Here are some helpful tips to get you started:Tip 1: Get quotes from multiple lendersIt’s recommended that you visit three to five lenders and discuss your mortgage options.  Tip 2: Consider all types of lendersObtain estimates from loan officers at banks and credit unions, as well as mortgage brokers and non-bank lenders.Tip 3: Compare loans on the same dayBecause mortgage rates change frequently, it’s best to compare loan programs on the same day so that you can accurately judge cost estimates from several lenders.Tip 4: Shop for a loan within a 45-day periodTry to do your mortgage shopping within a 45-day period so that there’s minimal effect on your credit. Multiple credit inquiries outside a 45-day period could lower your credit score.Tip 5: Compare all loan terms, not only the mortgage rateThe loan with the lowest mortgage rate may not always be the best choice for you. Rates are important, but you should also consider the overall cost of the loan.Be sure to look at the mortgage term, which is the duration of the mortgage, and the associated costs of financing, such as:The APR for the loan.Lender application fees.Processing or loan origination fees.Closing costs (also known as settlement fees).For each lender you work with, ask for an itemized summary of estimated fees. This should help you understand costs and compare mortgage options.After you’ve submitted an application, the lender is required to provide you with a Loan Estimate that includes the terms of your loan and all estimated costs, plus your APR, finance charges and payment schedule.Tip 6: Ask questions if you don’t understand loan featuresAsk the lender to fully explain the loan program that is being offered to you if you don’t understand all its features.  To help you weigh the pros and cons of your mortgage options, consider working with a housing counseling agency. A HUD-certified housing counselor can be an objective advisor and guide you in considering lenders and mortgage options.Vantage Mortgage Group, Inc.DBA Vantage Mortgage Brokers17040 Pilkington Rd Ste 300Lake Oswego, OR 97035Serving Oregon and Washington.503-496-0431