4 Money Saving Mortgage Tips for Apopka Florida
Buying a home and obtaining a mortgage are one of the most significant financial decisions that you will make in your lifetime. It is important to know that you have options when it comes to selecting a mortgage company and choosing a specific mortgage program for yoru Apopka Florida home purchase. Here are 5 money saving mortgage tips that you should keep in mind.
1. Shop Around and Compare Fees
Although many mortgage companies provide similar loan programs (conventional, FHA, etc.), their fees will vary. Most buyers know to ask about interest rates, but they often forget about the many other expenses related to obtaining a mortgage. It is important that you shop around and compare fees. Mortgage companies will set their own rates when it comes to credit reports, underwriting fees, attorney fees, etc. Compare these along with interest rate differences to truly understand which company provides the most cost-effective mortgage solution. This is one of the most important of our money saving mortgage tips.
2. Don't Forget to Lock in Your Rate
Interest rates quoted to you are merely estimates until you lock in your rate. This can't be done until you've at least found a home and have a set closing date. Interest rate locks do expire, so keep that in mind. Typically, the shorter the rate lock, the better the rate. Sometimes lenders will wait to lock the rate in hope that it may lower. Normally, if rates are on the rise, you'll want to lock it ASAP. However, if rates are fluctuating or likely to fall, it may be worthwhile to wait. Discuss the rate with your loan officer to make an educated decision on whether to lock in right away or wait. Making the right decision can help you save.
3. Compare Mortgage Programs
There is so much to consider when it comes to mortgage programs. There is no single figure that you should rely on. Instead, compare all the facts and evaluate both up-front and long-term costs/savings:
- Required Down Payment
- Closing Fees
- Interest Rate
- Monthly Payment
- PMI Charges
- Term (i.e. 15, 20, 30 years)
4. Avoid Closing Delays
Closing delays are always costly and should be avoided if at all possible. In most cases, your interest rate lock is set to expire right on or around your initial closing date. A delay would result in a rate extension charge (which could amount to several thousand dollars). Additionally, you may incur costs elsewhere. To minimize the potential for delays, provide all information requested by your mortgage company in a timely manner. Respond to all correspondence and complete your to-do list well in advance of deadlines.
Other Money Saving Mortgage Tips for Apopka Florida
Be sure to ask your loan officer and real estate agent for other money saving mortgage tips. You may be able to reduce up-front expenses by closing at a particular time of month, changing your down payment amount, or using a specific loan program. Saving money on your mortgage will give you a little bit more to work with when it comes to decorating and furnishing your new home!