Shop for Your Mortgage Before Buying an Anchorage Home
by Dan Wolf
on Monday, April 27th, 2015 at 7:42am.
Just as you are shopping for a great home with your Anchorage Realtor, shop for a great mortgage. A reputable lender will offer you a competitive rate. With interest rates on a recent climb, real estate experts brace for a seller’s market. Getting a better mortgage rate will help you as a buyer because you have more purchasing power. According to a recent article by Philly.com, a survey by the Consumer Financial Protection Bureau showed nearly half of home buyers did not shop around for a mortgage. Instead, they just dealt with one loan provider. By the time you get to the closing table, you will need to have a lender. Some lenders will lock you in at a specific rate for at least 30 days leading up to the closing, but policies vary from lender to lender.
Finding that edge
Even just a half a percentage point can mean thousands of dollars in savings, depending how large of a loan you take out. According to Philly.com, it’s best to shop a variety of big banks, small credit unions and regional banks for the best interest rate. By itemizing your taxes, you can deduct your property taxes when you file so a slightly higher rate may not affect your budget.
Timing the transaction
Experts say the rates offered my mortgage lenders often vary, but they tend to set the rates in the morning. If you receive a quote online in the evening, remember the rate quoted will likely change the next day. The rate disparity could be especially pronounced if you check over a weekend, experts say.
Considering lender fees
When shopping for a mortgage, realize you pay the rate and fees as well as “points.” Without knowing the fees and points involved, your rate quote isn't completely accurate. Some lenders don’t charge points, but do charge higher fixed dollar fees. Part of shopping around involves getting the best scenario when it comes to the rate as well as fees and points.
In addition to a 30-day lock in rate, some lenders agree to 45 or 60-day locks. With mortgage rates expected to go up due to the Fed’s movements, consider shopping for a mortgage in 2015. At Wolf Real Estate, we specialize in homes in Anchorage Alaska. For more tips on finding the most attractive mortgage and help hunting for a home in your price range, please contact us at 248-9653 or visit us online at www.anchoragehomesearch.com.