Let’s face it. You don’t know a whole lot about the home buying process, right? You’re not alone. People make this mistake when considering the biggest financial decision of their life. They listen to their realtor for everything because they have not taken the time to research, and it could be costing them a lot of money!
Understandably, home buying seems like a mysterious process. You find out you can get a loan, you look at houses with a realtor and put in offers and if accepted you can have a house in about 30 days! There are many steps that happen along the way that result in that final purchase price that you should consider.
First off, most realtors won’t help you find a home until you’re pre-approved for a mortgage. If you reach out to one without a pre-qualification letter, they will still work with you, but will direct them to a mortgage broker they typically use. This could be a costly first step. You want to make sure you get the best rates when it comes to your mortgage. You save the most money when you get the lowest interest rate and lenders are willing to compete for you!
Even a half-a-percent difference can change your mortgage payment completely! That’s where LendingTree comes in. Use our tools to understand how much home you can afford and shop for the best rate! You should not accept the first rate you get from a mortgage company without looking at other offers. Take control of your mortgage process by comparing rates first.
Consider these other steps along the buying process to help you save money:
You can choose your inspection company
It’s okay to use your realtor’s recommendation, but check out their reviews and pricing. Chances are, there may be another company that is just as qualified with a lower cost
Find a closing lawyer
Real estate brokers often have relationships with attorneys, but this is also a fee that you have the option to find on your own. In some cases, some closing attorneys can cost 2-3x more than a competitor, even though they are providing the exact same service
Compare Home Insurance rates
Your lender will want you to provide proof that you have homeowner’s insurance effective the date of closing. Shop around for the best rate for extra savings. Oftentimes, your auto insurance will bundle a deal for more savings.
The smartest thing to do when buying your home is shop for the best price. Don’t be afraid to look at other offers. Start the process now and use this form to see multiple loan offers and select your best rate.