How to Shop for a Mortgage for Your Santa Cruz Home

Posted by Lauren Spencer on Tuesday, March 22nd, 2011 at 11:01pm.

Shopping for a mortgage is as important as shopping for a Santa Cruz home to buy.  It’s the only way to get the best interest rate and terms with a lender you trust.  Take your time, do your research, and you’ll have peace of mind knowing that you found the mortgage that meets your needs.
Here are six tips to help you find the best mortgage to use to purchase your Santa Cruz home:


1. Find a lender you like and trust.  Ask your friends, neighbors, co-workers, and most importantly, your real estate agent for names of lenders they admire and enjoy working with.  You want to find one who is knowledgeable about the mortgage industry, will answer all your questions and can talk with you about loans in a way you understand.


2. Explore your options.  There is a wide-variety of loans for Santa Cruz homes.  Talk with your lender to make sure you understand the pros and cons of the loans and which one works best for your circumstances.


3. Get a low interest rate.  One-tenth of a point can make a big difference in a 30-year loan and save you thousands of dollars over the lifetime of the mortgage.


4. Identify fees and negotiate them down.  The lender is required to give you a good-faith estimate which includes an itemized list of all costs associated with the loan.  If there are any fees you don’t understand, ask your lender to explain them thoroughly.   Ask for fees you believe are too high to be eliminated or reduced. 


5. Find out if there are any penalties.  Ask if there are any penalties for anything on the loan you’re considering.  Do not get a loan with a pre-payment penalty.  A few loans have pre-payment penalties even if you pay it off early because you’re moving or refinancing.


6. Lock in your interest rate.  Most interest rates lock in for 30 to 90 days.  Make sure you have plenty of time to find your home, get the inspections done, and complete closing before the locked-in rate expires.

If you’d like a referral to a professional lender, give me a call today at 831-662-6522 or email me at Lauren@LaurenSpencer.com

For more information, please visit my website at www.MySantaCruzRealEstate.com.

Links:Good-faith estimate Pre-payment penalty Lock in your interest rate

 

About Lauren Spencer

Award-Winning Santa Cruz REALTOR®

Lauren Spencer is your local real estate expert, specializing in Santa Cruz real estate and surrounding communities—this is where she lives, works, and plays too. Let her know your questions about the community and county and she'll be happy to fill you in on all you want to know! Lauren Spencer has consistently been voted best local REALTOR in Santa Cruz and is always happy to offer her advice and expertise. Call her at: 800.226.4717.

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