If you're in the market to buy a home, the you have probably heard (from everyone around you) about what you should or should not do and... it's overwhelming.
What kind of loan should I get? What kind of loan do I qualify for? What are the interest rates? And how is it that different lenders can offer different rates? There are so many questions.
So we're simply breaking it down to the basics... Shop. Around. For. Your. Mortgage.
- Why should I shop around for a mortgage?
- What are the benefits of shopping your own mortgage?
- How much can I save by shopping for a mortgage?
- Why Choose Shop Your Own Mortgage
Why should I shop around for a mortgage?
Shopping for a mortgage before purchasing a home, just like shopping for life insurance, is an essential part of the process. It can provide you with invaluable insights, such as how much you're able to afford, what type of monthly payments are reasonable, and home insurance coverage.
Shopping around for a mortgage can seem like an overwhelming task, but the truth is that it's essential to save yourself money in the long run. Despite all of the paperwork involved with each application process, taking time compare different mortgages and their rates will ensure you get best deal possible.
What are the benefits of shopping your own mortgage?
Just like it's important to use online marketing for your business, it's important to shop for a mortgage. We are going to cover the most important benefits to shopping your own mortgage.
1. The ability to Compare interest rates
Rates are always changing, which explains why you will hear conflicting messages about interest rates. Mortgage interest rates, just like life insurance rates, change daily, because like stocks or crypto, rates have to do with the strength of the economy. Rates significantly decrease when the economy is not at its best. However, in strong economies, where people are more likely to buy a home, it costs more to borrow money -both you and the bank.
When you buy a home, you should aim to borrow money at the lowest possible interest rate. Shopping around for a mortgage will give you an opportunity to keep an eye out for the best rates, which will save you money over the life of your loan.
Learn more about HUD reducing FHA mortgage rates!
2. your Credit won't be negatively effected
At one time, shopping around for mortgages used to negatively impact your credit score due to different lenders issuing multiple credit checks. However, this is no longer the case. The major credit bureaus now treat all mortgage inquiries as one, as long as all of the inquiries occur within 30-45 days.
With an unlimited number of credit checks for loans being allowed within a 30 day timeframe, there's no reason why you shouldn't get multiple inquiries!
3. Not all lenders have the same fees
I repeat - no two lenders will have the same fees included in their quotes! Most loans come with origination fees, underwriting fees, hidden fees, points, coverage etc.
As with any other industry, each lender will have their own fee structure, and in some cases, you can negotiate with the lender to have certain fees waived or discounted. By shopping around for a mortgage you will be able to compare and find the fee structure that works best for you (and your wallet).
4. Not all lenders can offer the same loans or bonds
Just like their fee structure, some lenders don't have access to the same types of loans, bonds, and other government offerings that other lenders will have access to.
When shopping around for a mortgage, you're also shopping for a lender (who may be able to offer you a better option than the last).
5. You can shop for a loan on your own time
Shopping for a mortgage no longer needs to be restricted with waiting in line at the bank during regular bank hours.
Online lenders give you the flexibility and convenience of applying on your own time, from any device, faster, easier and receive multiple offers at once.
6. shopping for a mortgage will save you money
Overall, point blank, all of the above benefits ball down to one thing - by shopping for a mortgage, you will save more money than you think.
How much money are we talking?
How much can you save by shopping your own mortgage?
It's truly this simple - the more you shop your own mortgage, the more savings you rack up.
Here's a few stats that will really rack your brain!
- Over the lifetime of a loan, borrowers could save over $27,000, just by shopping multiple mortgages.
- 80% of home buyers could save $1,435 in interest annually just by getting 1 extra quote.
- $1,000+ could be saved in fees if you shop around.
Shopping between lenders can add up to thousands of dollars!
Mortgage payment savings from shopping with multiple lenders, 1995 to 2017.
Source: Freddie Mac
Save money by refinancing
Did you know that successful people routinely use mortgage refinancing to increase their wealth? Learn more about why people refinance their mortgage!
Why you should choose Shop Your Own Mortgage
Shop Your Own Mortgage was founded to fix the problems that persistently occur in the mortgage industry. We allow homeowners to fill out one application and have the lenders come to them.
Shop Your Own Mortgage is an independent mortgage marketplace, not tied to any product or lender. Our goal is to make it easier for you to explore your options.
Here's what Shop Your Own Mortgage is all about:
- We offer multiple upfront, quick quotes with no obligations.
No origination, underwriting, or credit card report fees.
- SYO Mortgage offers 24/7 access to our site, mortgage resources, and information.