How to Choose the Right Mortgage

Chrisdavy
Chrisdavy, Yahoo! Contributor Network
Dec 23, 2009 "Share your voice on Yahoo! websites. Start Here."
The mortgage broker is going the way of the investment banker, or at least he should be. This is the Information Age for a reason. I think the main lesson we should all learn from the recent recession is that we should use and trust professionals only to the extent to which our resources run out. The Internet has given the average person the ability to research for her or himself. Hopefully this article will empower you in your journey to the American Dream.
  1. Step 1
    • GO WITH YOUR GUT. Many people would extol the virtues of choosing the "right" broker and put this step last. As if they're telling you to trust some commissioned salesperson first and yourself LAST. Those days are over. You can find your own listings by going to your local Chamber. You can find your own mortgage rate and decide whether you want 30 year, 15 year, fixed, adjustable, etc., and get your monthly payment on bankrate.com. Find your own dream house and get your figures first, so if you absolutely must go to a mortgage company, you know what you want and don't let them talk you into things that could destroy you later. Go to freecreditreport.com and get your credit report and score.
    • Step 2

      CHOOSING A BROKER. A broker will probably have more access to a bigger pool of lenders than you yourself will, so once you figure out what you want, I feel comfortable advising you to go to a broker. BUT! As you call to screen them, you can ask them specific questions to see who can best serve you. Example: "I'm looking for a long term mortgage, so I'm not concerned with your teaser interest rates. I'm looking for a fixed rate, and my credit score is 650, so the max I'd pay in this market is 5.5%. I've got 20% down for sure so if you try to screw me in closing I'm gone. What can you do for me?" Asking smart questions is the key. Don't let anyone start talking "low interest now, reverse mortgage later" to you. Any and all credit guys want to keep you in debt. Any and all credit guys are PAID to keep you in debt. People can only run over you as much as you let them. And don't worry if you have bad credit. If you search enough, someone will give you a fair rate. We're all human.

    • Step 3

      OPTIONS. Always have the next lender, company, creditor, credit bureau, etc., on speed dial. The housing business is lethal, ruthless, and if you think this recession has taught anything to the people in this business, you are wrong. Bottom line: Until you can afford to pay for houses cash, know your gut and do your research. It's actually quite easy, and you can do it. Good luck!

Published by Chrisdavy

AC's licentious, guilty pleasure. What can I say? I write about sex and money. You know, the important stuff. Giggle. (But I do it so well!) Fashion, too. LOL  View profile

To comment, please sign in to your Yahoo! account, or sign up for a new account.