How to Shop for a Mortgage for 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.