What Most People Don’t Know About Mortgages on Their Santa Cruz Home

Posted by Lauren Spencer on Sunday, June 30th, 2013 at 1:01am.

When it comes to buying their first Santa Cruz home, many people are unaware of the basic facts of how their mortgage works. A survey by Zillow indicated that more than one third of potential first time homebuyers don’t understand the most fundamental details about their mortgages. This lack of understanding could cost you thousands of dollars, so make sure that you understand your mortgage before you make a serious financial commitment.

Here are a few of the important things that many people don’t know about mortgages and how they work:

Mortgage Rates Can Vary Depending on the Day

Did you know that mortgage rates can change daily? Simply by monitoring the changes in these rates, you could enjoy the benefit of saving a lot of money. Even a small percentage of difference could add up to thousands of dollars that you end up saving per year. This is why you shouldn’t choose the first rate you see – take your time to shop around.

The Biggest the Down Payment, the Better

Don’t think you need to save up a lot of money on a down payment? The truth is that the more you can save up for a down payment, the better you will be in the long run. You will own a larger stake in your home, you can take out a smaller mortgage, your monthly payments will be smaller and you will end up paying less interest over the life of the mortgage.

Lender Fees Are Open to Negotiation

When you apply for a loan, you will need to pay lender fees. However, most people don’t realize that they have the ability to negotiate their lender fees. The fees are different from one lender to the next and they are always open to negotiation so don’t be afraid to bargain.

Pre-Qualified Doesn’t Guarantee Financing

You might be “pre-qualified” for a loan, but this doesn’t mean that you have secured financing on your home. Many people think it does, but it only means that the lender has calculated approximately what you can afford. You will not have secured your financing until the lender has officially approved your loan.

These are just a few examples of important mortgage info that most people might not know. If you are looking to purchase a Santa Cruz home, contact me for more information at Lauren@LaurenSpencer.com or 831.662.6522.

For additional real estate information, please visit my home page at www.MySantaCruzRealEstate.com.

Resources:

negotiate their lender fees
save up for a down payment
shop around

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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