It’s no secret that the home buying process can be overwhelming at times. If you have the tips to shop right, stepping into your dream home can be less of a hassle than you think.

Tip #1:  The first step is to define your goals. Are you in search of a loan with the lowest total costs, least long-term monthly payment, least initial monthly payment or the quickest equity build-up? Maybe renting a home is a better option for you at this time. Or, perhaps you are in the market to refinance your home. Regardless your situation, determine what your goals are so you can be placed with a loan advisor that specializes in the mortgage solutions that fit your needs best.

Tip #2:  A majority of the mortgage shopping process includes comparing mortgage brokers and lenders and what it is they are charging to get an interest rate. Be sure that you are comparing them on the same day since the rates fluctuate as the bond market changes, which occurs daily.

Tip #3:  When analyzing the costs presented to you by lenders, pay close attention to the total costs in order to receive the loan (grand total) before you move forward with comparing interest rates.

Tip #4:  Understanding the breakdown of the different fees lenders charge is another important component to being a responsible mortgage shopper. Fees can be broken down into one of four different categories:

  1. a.     Appraisal/Credit Report Fees or Application Fee – fees paid to companies other than your lender for services necessary in order to obtain a loan
  2. b.     Loan Origination and Points – an origination fee or point amounts to one percent of your received loan amount. Converting this percentage to dollars will help to reach a truer amount.
  3. c.     Lender Charges – underwriting, processing, document preparation, tax service (costs can vary significantly by lender)
  4. d.     Title Fees – paid directly to a title company and include title insurance, recording fees, closing costs

At USA Mortgage, we offer competitive pricing and we talk you through every single cost. There are no surprises, just opportunities. For the chance to speak with one of our experienced St. Louis mortgage lenders, contact us today so we can get you on the smoothest path to a new home.