Home Mortgage Financing - Comparing Loan Terms

Comparing Loan Terms

When comparing loan terms for mortgage financing from different there are several steps that you can take. First, devise a checklist for the information from each lending institution. You should include the company's name and basic information, the type of mortgage, minimum down payment required, interest rate and points, closing costs, loan processing time, and whether prepayment is allowed. Having a skeleton terms chart and checklist will make it easier on you.

Speak with companies by phone or in person. Be sure to call every lender on the list the same day, as interest rates can fluctuate daily. Use your checklist. Fill in the blanks for each lender that you interview.

You don't have to try to tackle the job of comparing loan terms all by yourself! In addition to doing your own research, your real estate agent may have access to a database of lender and mortgage options. Though your agent may primarily be affiliated with a particular lending institution, he or she may also be able to suggest a variety of different lender options to you. Afterall, it's in their best interest to make sure that you get the best home mortgage financing that you can.