There are over four thousand different types of mortgages offered by hundreds of different mortgage lenders. Its a crowded market and if you are looking for a mortgage, you will have to compare several types of mortgages before you settle with a particular lender. Its a daunting prospect, but at present, the mortgage market is one of the few buyers markets, and you can choose from different types of mortgages and different mortgage lenders.
Most buyers make the mistake of jumping at the first mortgage option offered by the first lender. Since it is a buyer’s market, mortgage lenders have successfully managed to create a notion that buyers are not worthy of their business. Never buy in to the first mortgage offer. Always shop around for better deals and compare at least five different lending companies before you decide on which mortgage to purchase. When comparing quotes from different lenders, make sure you get “like for like” quotes from them. For example, make sure that the amount you want to borrow and the time period for repayment is the same for all quotes. This will help you to easily compare different quotes from different lenders.
One of the most obvious comparison items with all quotes is the Headline Interest Rate. However, with some lenders this number may be misleading and you will probably end up paying more than what you bargained for. Therefore a comparison of the Annual Percentage Rate (APR) will allow you to conduct a more accurate comparison. You should also list down all the fees, costs of valuation and survey and any other costs each lender might apply to your mortgage. Conducting a thorough analysis of each quote and then comparing them will help you to choose the best possible mortgage option.