The Real Deal: How can you keep your mortgage low if you're shopping for a home? Here are some tips.
Last week, mortgage rates hit the highest level since 2008. So, how can you score the best rate possible?
Finding the right mortgage is a 15-30 year commitment. So it makes financial sense to search for the lowest payment you can find.
News 12's consumer reporter Janice Lieberman asked a mortgage lender to sort it all out.
Michael Moskowitz, founder of Equity Now, says you need to know you will be eligible to act fast.
"What you need to be is you need to be pre-approved, which means you need to submit to them an application. But it's not difficult because once you fill that one application, it's the same forms that you do for other people. So, you would go to three or four lenders for the purposes of prequalification and also for the purposes of shopping," Moskowitz says.
MORE: Ready to buy a new home, or need financial assistance? Here are some financial resources for homeowners.
Freddie Mac did a study and found that if you shop around with just one other lender, you can save $1,500 over the course of your mortgage. If you shop five, you would save over $5,000.
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Moskowitz recommends that when shopping around, to ask lenders for a cost estimate on the same day, because rates are volatile.
Below are some tips to help you save:
Research mortgage options - with rates this high, research all your options on fixed and adjustable rate mortgages.
How long will you stay in your home? Try to figure out how long you will keep your home. And consider if a seven or five-year adjustable mortgage works for you.
The most important thing to do is to choose a lender you can trust, so ask friends for recommendations.
"If there's anything not clear and the person is not giving you an answer, you're probably in the wrong place. You want people to be straightforward with you, honest, and you should get a feeling that these people are trustworthy and reliable," Moskowitz says.
With the price of homes so high, and the inventory low, experts advise being creative. Look for property further away from your job as many people are not going into the office as frequently.
Or consider a townhouse which may be less pricey.