ArtsAutosBooksBusinessEducationEntertainmentFamilyFashionFoodGamesGenderHealthHolidaysHomeHubPagesPersonal FinancePetsPoliticsReligionSportsTechnologyTravel

How To Get The Right Mortgage!

Updated on February 27, 2010

Weeks of looking for just the right house can be destroyed in minutes by getting the wrong mortgage.

If you want to make a banker laugh (no, I can't imagine why you would, but if you did ... ) just repeat to him that oft-repeated real-estate agent cliche, "A home is the biggest investment most people make in a lifetime."
 
Odds are he'll correct you: "No, a home is not the biggest investment most people make. The mortgage is." (I didn't say it would be a big laugh.) But the point is, he'd be right.

Unless you're one of a handful of people who can walk up to a home seller with a suitcase full o' cash, you need a mortgage to buy a house. And, by the time all the payments are made, the $250,000 you agreed to pay for a home will actually end up being closer to $530,000, with most of that going to the lender in the form of interest on the loan.

A lot of money? For sure. Does it have to be that way? For most of us, yes. But you don't have to be a helpless lamb among the financial wolves. Attitude is everything, and your attitude should be: A mortgage is not something you "get," it's something you "shop" for. And, for more and more people, shopping for it on the Internet presents an opportunity to save money, though not for the reasons most people think.

What was good advice before the Internet is still good advice today: Shop around. Don't talk to just one lender, talk to three, talk to five, talk to as many as you can. The truth is that most people only talk to one lender and take the package he says is best for them. The Internet has made comparison shopping infinitely more feasible than it was a decade ago when you had to drive from one mortgage office to another.

There are lots of mortgage Web sites out there to search through. A quick Google search will come up with dozens if not hundreds in your area. Remember that just because you see a great low rate on the Internet doesn't mean you should pounce on it. Once you've got the information, why not turn to your local lender and ask him if he can do as well or better? See if they're willing to earn your business.

A couple of mortgage terms that home buyers should keep in mind:

  1. Pre-qualification is a pre-loan process during which your real-estate agent or loan officer has taken a general look at your finances and figured how much house you can afford. But it's not a guarantee that somebody will loan you the money. So when you find your dream house and make an offer, you'll still need a contingency in the offer that essentially says, "We'll buy the house if we can get financing."
  2. Pre-approval, the better option especially in a market where homes sell quickly, is the financial equivalent of a suitcase full of cash. It means a lender has taken a thorough look at your finances and agreed, in writing, to loan you a specific maximum amount. That means no financing contingency on your offer, which probably will put you a notch above other buyers competing for the same house.

Comments

    0 of 8192 characters used
    Post Comment

    No comments yet.

    working

    This website uses cookies

    As a user in the EEA, your approval is needed on a few things. To provide a better website experience, hubpages.com uses cookies (and other similar technologies) and may collect, process, and share personal data. Please choose which areas of our service you consent to our doing so.

    For more information on managing or withdrawing consents and how we handle data, visit our Privacy Policy at: https://hubpages.com/privacy-policy#gdpr

    Show Details
    Necessary
    HubPages Device IDThis is used to identify particular browsers or devices when the access the service, and is used for security reasons.
    LoginThis is necessary to sign in to the HubPages Service.
    Google RecaptchaThis is used to prevent bots and spam. (Privacy Policy)
    AkismetThis is used to detect comment spam. (Privacy Policy)
    HubPages Google AnalyticsThis is used to provide data on traffic to our website, all personally identifyable data is anonymized. (Privacy Policy)
    HubPages Traffic PixelThis is used to collect data on traffic to articles and other pages on our site. Unless you are signed in to a HubPages account, all personally identifiable information is anonymized.
    Amazon Web ServicesThis is a cloud services platform that we used to host our service. (Privacy Policy)
    CloudflareThis is a cloud CDN service that we use to efficiently deliver files required for our service to operate such as javascript, cascading style sheets, images, and videos. (Privacy Policy)
    Google Hosted LibrariesJavascript software libraries such as jQuery are loaded at endpoints on the googleapis.com or gstatic.com domains, for performance and efficiency reasons. (Privacy Policy)
    Features
    Google Custom SearchThis is feature allows you to search the site. (Privacy Policy)
    Google MapsSome articles have Google Maps embedded in them. (Privacy Policy)
    Google ChartsThis is used to display charts and graphs on articles and the author center. (Privacy Policy)
    Google AdSense Host APIThis service allows you to sign up for or associate a Google AdSense account with HubPages, so that you can earn money from ads on your articles. No data is shared unless you engage with this feature. (Privacy Policy)
    Google YouTubeSome articles have YouTube videos embedded in them. (Privacy Policy)
    VimeoSome articles have Vimeo videos embedded in them. (Privacy Policy)
    PaypalThis is used for a registered author who enrolls in the HubPages Earnings program and requests to be paid via PayPal. No data is shared with Paypal unless you engage with this feature. (Privacy Policy)
    Facebook LoginYou can use this to streamline signing up for, or signing in to your Hubpages account. No data is shared with Facebook unless you engage with this feature. (Privacy Policy)
    MavenThis supports the Maven widget and search functionality. (Privacy Policy)
    Marketing
    Google AdSenseThis is an ad network. (Privacy Policy)
    Google DoubleClickGoogle provides ad serving technology and runs an ad network. (Privacy Policy)
    Index ExchangeThis is an ad network. (Privacy Policy)
    SovrnThis is an ad network. (Privacy Policy)
    Facebook AdsThis is an ad network. (Privacy Policy)
    Amazon Unified Ad MarketplaceThis is an ad network. (Privacy Policy)
    AppNexusThis is an ad network. (Privacy Policy)
    OpenxThis is an ad network. (Privacy Policy)
    Rubicon ProjectThis is an ad network. (Privacy Policy)
    TripleLiftThis is an ad network. (Privacy Policy)
    Say MediaWe partner with Say Media to deliver ad campaigns on our sites. (Privacy Policy)
    Remarketing PixelsWe may use remarketing pixels from advertising networks such as Google AdWords, Bing Ads, and Facebook in order to advertise the HubPages Service to people that have visited our sites.
    Conversion Tracking PixelsWe may use conversion tracking pixels from advertising networks such as Google AdWords, Bing Ads, and Facebook in order to identify when an advertisement has successfully resulted in the desired action, such as signing up for the HubPages Service or publishing an article on the HubPages Service.
    Statistics
    Author Google AnalyticsThis is used to provide traffic data and reports to the authors of articles on the HubPages Service. (Privacy Policy)
    ComscoreComScore is a media measurement and analytics company providing marketing data and analytics to enterprises, media and advertising agencies, and publishers. Non-consent will result in ComScore only processing obfuscated personal data. (Privacy Policy)
    Amazon Tracking PixelSome articles display amazon products as part of the Amazon Affiliate program, this pixel provides traffic statistics for those products (Privacy Policy)