It’s standard that first time home buyers require assistance in navigating the application and negotiation of their very first mortgage. Common recurring questions are often ‘What’s the best place to get a mortgage?’, ‘Where can I get a good deal on a mortgage?’ or ‘Who offers the best mortgage options and rates?’ The true answer to these questions is simple, but leads to many complications: There isn’t a definitive answer. This answer is subjective to each home buyer’s financial situation, budget, credit history, and projected income.
While an objective answer to where to find the best Mortgage options doesn’t exist, here’s a guide to assist you in the pursuit of a mortgage that would be the best fit for you.
Know your current Financial Standing
The best way to know exactly what your options are for mortgage types and their different rates is to know your own finances as well as you possibly can. It would be beneficial to your home buying process to understand your financial health, which you can brush up on here.
Essentially, you need to know your current debt-to-income ratio, your current credit score, total loan outstanding loan debts, your balance in savings, and your budget of income vs. bills. This will give you and your lenders context; you’ll both know what types of mortgages you qualify for, and which of these mortgages would fit within your finances.
This is the closest answer to “what’s the best place” as far as getting the best mortgage. Through the services of a local independent mortgage broker (find and connect with a local broker here), especially for first-time homebuyers. Brokers will assist buyers throughout the entire home buying process, and will take the time to educate them on navigating mortgage applications, and will assist you in negotiations to help you find the best prices and rates for your mortgage.
Brokers find the best mortgages for you and your finances, and can help negotiate the best possible terms for closing. Unlike a bank, where your offered mortgage loans and rates are predetermined based on your finances, Brokers are able to negotiate with multiple lenders at a time, giving you ultimately more options as well.
If you’re hesitating to enlist the services of a broker due to worrying about the short-term fees you may incur, broker fees are often fully paid via the lender, and are included in your total mortgage. So there’s not typically short-term fees and rates associated with a broker’s services; and they typically pay long term dividends many times over with the money saved with negotiated mortgage terms.
It’s Not a Question of Where, but What and How
There’s no answer to where you can find the best mortgage for you; it’s a matter of what mortgage you decide to pursue, and how you choose to pursue it.
If you do choose to navigate through the mortgage process on your own, it’s important to understand that there are many different types of loans available, all with their own specific qualifications. Your options can be navigated, reviewed, and negotiated by working with a local mortgage broker, or you can do your own research of mortgage types and find a local lender that offers the type you’re looking for.