Kick the Tires: Comparison Shop for Your New Home Mortgage

Mortgages are often called "mortgage products.” They are commodities, much like cars or other items, and terms may be negotiable.
Much like you wouldn't buy a car without test driving it, you shouldn't settle on a home mortgage product without shopping around.
Just because some of the features are good doesn't mean the entire mortgage product will work for you. On the other hand, just because you find a term you don't like in a mortgage product doesn't mean that product can't be the best solution for your new home loan.
Shopping for a New Home Loan with a Mortgage Broker
When you're shopping for a new home loan you may want to consider using the services of a mortgage broker. Mortgage brokers have contacts with many different lenders and can find you the best rate available and give you a wide selection of mortgage products. Brokers usually arrange transactions between lenders and the person looking for the new home loan, rather than lending money themselves.

Some lending institutions are both lenders and brokers and the broker is not obligated to find you the best new home loan or mortgage product unless he has contracted with you as your agent. You also need to be certain of who pays the mortgage broker's fee.
What to Ask When Shopping for a Mortgage Loan
When shopping for the best possible home loan, it's important to have all the information on costs that you can. Some questions to think about asking:
· Is the rate quoted the lowest for the week and how much has it varied recently?
· Is the interest rate is fixed or variable?
· If variable, how much it will go up if interest rates rise?
· Will it go down automatically when interest rates are reduced?

You need to find the best mortgage product for your situation. It's your mortgage, and your new home. So make sure and ask every question you can think of while finding your new home loan.

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