HOW TO COMPARE AND SHOP MORTGAGE? A mortgage is a long-term loan that you will commit to for a decade or two. Therefore, it is essential to ensure you secure the best mortgage rates in the market to minimize your overall cost of buying a home. Even the slightest variation of mortgage rates can help save tens of thousands over the loanrepayment duration. Therefore, you need to compare mortgage rates and extensively shop for the best deal. But how do you compare and shop for a mortgage? How to Shop for Mortgage Although shopping for a mortgage may seem complicated, with the right steps, it gets easier. Below is a step by step guide on how to shop for a mortgage; Identify Your Credit Score Your credit score is an important factor that speaks volumes about your financial responsibility and ability to a lender. It helps determine whether you qualify for the mortgage and at what terms. A high credit score rating ensures you get better mortgage terms, as it shows good financial responsibility. Therefore, as you start shopping for a mortgage, ensure you scrutinize your credit report months before applying. That way, you can correct any errors or raise your credit score in time for the application. Contrary to popular opinion, you won't get penalized whenever a lender inquires about your credit score. Credit agencies understand the importance of shopping around for a mortgage, and thus, they don't penalize mortgage-related queries. Identify the Mortgage Type As you shop around for mortgage loans, begin by identifying the type of loan you need. There are two main broad categories of loans; conventional and government-backed loans.
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