| Mistake #1: Giving in to the hype | | | | constantly, from day-to-day and even from |
| You can't get away from it. Turn on the radio...there it | | | | hour-to-hour. You might get quoted 4.76% on the |
| is. Turn on the TV...there it is again. Openthe | | | | phone, but by the time you show up for your |
| newspaper and - SURPRISE! - there it is again. Every | | | | application appointment, the rate has soared to 6%. It's |
| day all across America, consumers arebombarded | | | | more common than you might think. |
| with ads from mortgage companies, on TV, Radio, | | | | Mistake #2: Becoming a "Rate-shopper" |
| Billboards and Newspapers. Andevery one of those | | | | Far too many home buyers choose one mortgage |
| ads says the exact same thing: | | | | company over another based solely on rate. |
| "We have the lowest rates and nobody can beat our | | | | And why not? Shaving a quarter-point off your home |
| service". | | | | mortgage can equal thousands of dollars insavings |
| Because everyone is saying the same thing, you face | | | | over the years. But there is a problem. By only |
| a frustrating experience when you finallygive in and call | | | | focusing on rates and fees, you're missingthe "big |
| one of those lenders. Here is an illustration of an all too | | | | picture". There are literally hundreds of different loan |
| common experience. | | | | programs available today. This isbecause there are so |
| You call up XYZ lender and they quote you a rate of | | | | many different scenarios. There are fixed loans, |
| 4.76% on a 5/1 ARM Loan. So, you say toyourself, | | | | adjustable-rate loans, jumboloans, interest-only loans, |
| "wow, what a great rate" and excitedly schedule an | | | | etc... You might think you're saving thousands, but if you |
| application appointment. Then,when you show up to | | | | choose thewrong program for your needs, you might |
| the appointment, the loan officer tells you that you are | | | | be missing out on not only savings, but much more. |
| approved on the 5/1 | | | | This is why it is critical for you to consult with an |
| ARM loan at a rate of 5.75% . This obviously leads to | | | | experienced, reputable mortgage lender whocan |
| frustration and disappointment in manycases. So, you | | | | analyze your particular scenario and offer you a |
| might be asking, "isn't that false advertising?" The | | | | number of options to choose from. By beinginformed |
| answer is no. In many cases, themortgage rates you | | | | on all the options, you can choose a loan that helps |
| hear about on TV and in the newspaper are 100% | | | | you: |
| accurate, but are onlyreserved for a select group of | | | | - Save money for your retirement or a child's |
| home buyers. People with perfect credit, and plenty of | | | | education |
| cash for adown payment. The rate you get depends | | | | - Reduce Your Monthly Payment Burden |
| on these and other factors. But even if you have | | | | - Earn equity faster |
| perfect credit and a down payment, you might still end | | | | - Pay off your home sooner |
| up getting caught in the same situation. Rates fluctuate | | | | - And much, much more! |