Harrisonburg Real Estate Guru

Shopping for a Mortgage

November 14, 2008 on 3:36 pm | In Harrisonburg Virginia Real Estate | No Comments

  

Mortgages Are Not Alike -Shop Apples and Apples

We shop for everything in our lives.  We shop for cars, we shop for clothes, we shop for almost everything, and when we do, the cost matters.  Well using that logic, shouldn’t we shop for the best mortgage too?

All mortgages are not created equal. If you think you can’t save money by shopping around for the best one, you are mistaken.  The world of home financing is highly competitive. You run the risk of frittering away a lot of your hard earned money if you don’t get quotes from several reputable providers before selecting the right one for you.  It could literally be tens of thousands of dollars, or more, over the life of a loan,….now that’s losing big money.

Do You Need to be a CPA to Know What’s Best?

No. But you can’t rely soley on the lowest interest rate quoted either. Fees, charges, hidden or vague terms, can make the lowest interest rate result in a much higher cost to you in the long run.  Mortgages are complex financial instruments. That complexity is evidenced when one looks at the current problems we are experiencing in the marketplace today.  Some purchasers naively thought, ”If they gave me the mortgage, I must be able to afford the house.” Sadly, we are seeing many foreclosures all across the country that are the results of buyer ignorance and lender greed.

Getting quotes from several providers and allowing someone to help you decide is advisable. Find a financial professional, knowledgeable family friend, Realtor, or other professional who can sort through the trems and numbers revealing the real deal.  Also, you can find help through non profit organizations in most major metropolitan areas too. Check your Yellow Pages or Google for other possibilities.

The Long and Short

The people who provide mortgages are like any other group of service providers.  There are really reputable ones who will provide good service and low rates, and there are some who are not looking out for your interest (pun intended).  So, do your homework and choose wisely, it really will pay you to shop.

Barry Suttles – Realtor

New Homes Group- Manager

Kline May Realty