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Mortgage Information: Knowledge Is Power

January 26th, 2011

mortgage-information-application.jpgMaking sure you make the right choice in mortgage product and lender comes from having the best information at hand. Knowledge is power, especially when it comes to your money. When you are looking for a mortgage that will best suit you, it is important that you are aware of the most up-to-date information on home lending. Being familiar with current products and procedures will help you to get the best deal.

Mortgages for First Home Buyers

For people who are not afflicted with a profound lack of financial acumen, buying a property is usually an excellent decision. Even though you have probably put a lot of effort into saving the deposit and finding the right home, there is still some hard work ahead of you. Your first step as a home buyer is to start researching how much you can afford. Set out a monthly budget, and decide what a reasonable monthly payment to your mortgage would be and whether you can afford it.

As a first home buyer, before you make a commitment to any bank, loan, or broker, read the fine print and find as much background information as you can on the company and product. Knowing your interest rate, as well as any fees and charges, is absolutely integral at this point. Don’t be fooled by a cheap loan rate that has a bunch of extra fees and charges attached every month; this is a trick many banks will use in an attempt to lure you in.

Mortgages from the Banks

When looking for a loan, the first place many people will visit is their local bank. Sometimes, because they have an existing relationship with the bank, they do not ask as many questions as they probably should. While a bank may give you just as great a deal, it is still just as important as ever to read the small print.

Lending and Brokers

A mortgage broker is an independent dealer who will negotiate on your behalf with banks and lenders in order to get you the best deal possible from the bank. It doesn’t cost anything to use a mortgage broker; they are paid a referral fee and a commission from the bank. Because they are shopping around on your behalf, this can be a good way to compare products and make sure you are getting the best deal possible. Some brokers are aligned with particular banks and may get a higher commission from these than from other lenders. It’s a good idea to ask them about this before you sign on the dotted line.

This article on mortgage information was supplied by Renee Mirabito from Constant Content.

Related articles:

What to Bring When Applying for a Mortgage
How to Get a Mortgage When You Are Self-Employed

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