Questions to Consider As You Evaluate Your Mortgage Options

by Kathryn Williams 11/24/2019

Getting pre-approved for a mortgage may prove to be a long, arduous process if you are not careful. Fortunately, homebuyers who plan ahead should have no trouble obtaining a mortgage so they can enter the housing market with a budget in hand.

Ultimately, there are many questions to consider as you assess your mortgage options, and these questions include:

1. What type of mortgage should I get?

The two most common types of mortgages are adjustable- and fixed-rate varieties. If you understand the differences between these mortgage options, you can make an informed mortgage decision.

An adjustable-rate mortgage generally features a lower initial interest rate than a fixed-rate option. However, after a set amount of time, an adjustable-rate mortgage's interest rate will increase.

Comparatively, a fixed-rate mortgage has an interest rate that will remain intact for the life of your mortgage. This means you will pay the same amount each month until your mortgage is paid in full.

When it comes to deciding between an adjustable- and fixed-rate mortgage, it pays to look at the pros and cons of both options. Remember, no two homebuyers are exactly alike, and a mortgage that works well for one buyer may not work well for another. But if you evaluate adjustable- and fixed-rate mortgages closely, you can make the best-possible decision.

2. What differentiates an ordinary lender from an outstanding one?

There is no need to settle for an "ordinary" lender as you pursue mortgage options. Instead, you should seek out an exceptional lender that goes above and beyond the call of duty to assist you.

Typically, an outstanding lender employs mortgage specialists who are ready to respond to any concerns or questions. These specialists can help you evaluate a broad array of mortgage options and decide which mortgage best suits your individual needs.

Don't be afraid to meet with several banks and credit unions, either. This will allow you to assess many lenders and select one that matches or exceeds your expectations.

3. Which mortgage should I select?

There is no one-size-fits-all mortgage that works well for all homebuyers, at all times. As such, you should conduct plenty of research as you explore your mortgage options. This research will enable you to analyze assorted mortgages and lenders and make the optimal choices.

Once you have a mortgage, you can move one step closer to acquiring your dream house. And if you collaborate with a real estate agent, you can receive expert support at each stage of the homebuying journey.

A real estate agent is a must-have for any homebuyer, regardless of the current housing market's conditions. This housing market professional can teach you everything you need to know about buying a house. Also, he or she can help you examine a vast collection of available houses.

Ready to kick off a house search? Get pre-approved for a mortgage, and you can enter the housing market with a homebuying budget at your disposal.

About the Author
Author

Kathryn Williams

As a respected and accomplished Realtor, Katy offers her clients an outstanding level of service. With three generations of her family living in Fairfield County, Katy has an exceptional knowledge of the surrounding communities and her years of experience allow her to excel at every level of the transaction. Prior to earning her Real Estate license, Katy graduated from Wilton High School, earned a Bachelor of Science from the University of Rhode Island and a Master of Science from the Bank Street School of Education. Katy received her Real Estate license in 2009 and chose to work in a local agency that values and supports the communities she loves. Known by colleagues and clients alike for her honesty, clarity, perseverance and fairness, Katy has a reputation for her timely responsiveness to her clients’ needs and concerns. In addition to her real estate business, Katy is deeply committed to volunteerism. She is involved on the board of the Wilton Historical Society and with the biannual Minks to Sinks Fundraiser for the Family and Children's Agency. She enjoys playing tennis and golf, cooking, reading and spending time with her family. For the past 22 years, Katy and her husband have been raising their four children in Wilton. Katy loves sharing her passion for the community with her clients and helping them find their perfect home. Member: National Association of Realtors Connecticut Association of Realtors Consolidated Multiple Listing Service Mid Fairfield County Association of Realtors Leading Real Estate Companies of the World Wilton Chamber of Commerce Kiwanis Club