If you have decided to refinance your current mortgage loan or are considering a second mortgage, the most important thing you can do is shop around for the best deal. Mortgage companies come in a variety of different flavors. You might find one at your local bank; however, there are also wholesale mortgage lenders you can access through a variety of sources. There are a variety of retail mortgage lenders, who employ their own officers.
The mortgage industry has become extremely competitive due to the sheer number of mortgage lenders available today. Before you sign on with any one lender shop around, let the mortgage lenders fight over you. Shopping for a mortgage lender is easier than it sounds. Most lenders have information available on the Internet, so it should be easy enough to make a list of prospective lenders that meet your needs. Be sure to get closing costs for each program. Your closing costs should not be more than five percent of the loan amount, excluding the down payment.
Shopping around will allow you to get a feel for the market and find the best deal for your budget. Don?t limit yourself to one or two lenders; there are so many programs to choose from today that you would be doing yourself a great disservice. Shopping for a mortgage is much like shopping for a car. Check out different dealerships, go for a test drive, and then discuss prices. Refinancing your home is a decision you will have to live with for years; you don?t want to make this decision lightly. The more you educate yourself on the process the better suited you will be to make an educated decision that best fits your needs.
To learn more about saving money when you refinance, sign up for our free guide: “Five Things You Need to Know Before Refinancing Your Mortgage.”
My name is Rob Regehr and I’m a personal finance writer with a chip on my shoulder for banks and brokers that take advantage of my friends and neighbors.
