This is a continuation of a series: 10 Common Myths Shared by Homebuyers.* See myth #8 here.
It can be complex in choosing a mortgage since there are plenty of options. Your particular circumstances may dictate what options are available to you. By assuming all mortgage are the same, a buyer might deprive themselves of making a fully informed decision. When borrowers compare rates, you could make sure you are comparing apples to apples in the same season. What I mean by "season" is that if you are shopping rates with different lenders, you should get a quote from all of them within 1-2 hours of each other. Rates change daily (sometimes more than once in a day). Comparing apples to apples means that you should get a good faith estimate (GFE) from each lender to compare fees. Some lender will estimate taxes and insurance differently which can change the bottom line. Ask you realtor to help you compare the differences.
Some questions a borrower should consider are: How does one rate compare to the other over the long haul? Does a 15 year or 30 year program measure up to your goals? Does an adjustable rate mortgage make sense and if so, what the best time frame? Are there buy down options? Is the loan assumable? Will it have a prepayment penalty? Have a reliable and professional lender will help you evaluate your options. You realtor will be able to recommend a professional that will work for YOU.
Michele Reneau - Military Relocation Specialist with Carolina One Real Estate in Charleston, SC.
Contact Michele Reneau, Realtor®, North Charleston, SC Relocation Expert, CRS, GRI, ABR. Licensed Realtor® in South Carolina at 843-572-0518 to list your property for sale or to purchase real estate in Charleston, Goose Creek, Summerville, North Charleston, Hanahan, Mount Pleasant and the surrounding areas in Charleston County, Berkeley County or Dorchester County, South Carolina. The Charleston Relocation Expert specializes in military relocation, first time homebuyers and creating marketing exposure to sell your home in the Charleston SC Real Estate market. I can also be contacted by email at firstname.lastname@example.org. To view all Charleston Metro area Homes for Sale Click Here and then click on Search for Homes.