When shopping for a new home many buyers get caught up with interest rates. At Title Mortgage we offer competitive rates that are the same or better than other lenders in the Upper Valley and in greater Burlington, VT. We have a unique arrangement with our mortgage partners that allows us to offer you the most competitive rates by letting our mortgage partners compete for your loan. This competition gives us the widest selection of loan products.
Interest rates are certainly important but many homeowners will find that the hidden costs are in the closing costs! It is very important to have a clear understanding of the difference between interest rate and points.
Title Mortgage is committed to helping you understand the cost of your mortgage when it comes to rate and the fees associated with obtaining mortgage financing. Call your bank or credit union, get a loan estimate, and then call us today and we promise to do a side by side comparison of rate and fees for any loan product you’re considering.
Title Mortgage Solution is a local licensed mortgage lender, which means we fund your purchase or refinance transactions with our own money and work with many mortgage partners to service your loan. If your mortgage makes sense, we can make it happen! Our local team is committed to seeing you through this sometimes complicated process. Your loan is never placed in a huge national queue in line with 100’s of other loans from around the country. all of our loans are processed in-house and we are available to provide you with up to the minute status reports.
Why choose Title Mortgage? Local Service, Lower Rates and Lower Fees!
The Loan Estimate
Banks and lenders are required to give you a Loan Estimate when shopping for your home loan. In order to receive a Loan Estimate, the bank or lender must receive the 6 required pieces of information from you including:
3-Social security number to obtain a credit report
5-Estimated value of the property
Banks and lenders are required to honor the fees they quote you on the loan estimate unless there is a changed circumstance.
If you prefer to shop for a mortgage without disclosing the required information, banks and lenders, may provide you with a “Fees Worksheet” or similar worksheet that outlines the banks or lenders “standard” fees. Use caution when using these worksheets as banks and lenders are not required to honor the rates and fees quoted on a Fee’s Worksheet.
At Title Mortgage, we take RATE and FEES seriously and want you to get all the information needed to SAVE on your mortgage.
Below is some important information taken from the Consumer Financial Protection Bureau’s booklet “Your home loan toolkit: A step-by-step guide” that we find helpful. For more information read cfpb’s complete version today!
8 Steps to Help you Choose the Best Mortgage for you:
1. Determine what affordable means to you – Your lender can determine if you are able to repay your mortgage amount however it’s up to you to decide if you are comfortable with that mortgage payment as well as the costs associated with owning a home.
2. Understand Your Credit Score – Your credit and credit score will have a major impact on your mortgage interest rate and the fees that you pay. Make sure you know your credit score and if it’s below 700, consider taking a few months to improve it before you start home shopping. You can obtain a free credit report from annualcreditreport.com.
3. Decide Between a Fixed or Adjustable Mortgage Type – A fixed-rate mortgage has a set interest rate and monthly payment that remains through the life of your loan. An adjustable-rate mortgage typically starts out with a lower payment however after a set term it can increase. This mortgage type makes sense if you intend to sell the home after a short time.
4. Identify the Right Downpayment for you – A 20% downpayment is common when buying a home but not possible for all buyers. Your downpayment is a prepayment on your home and reduces your overall borrowing cost.
5. Understand the Trade-Off Between Interest Rate and Points – You have the option to pay points to lower your interest rate, have a zero point loan or you can have points paid to lower your closing costs. The chart above can help you better understand points.
6. Shop Multiple Lenders – Once you have completed steps 1-5 it’s time to get serious and find a lender. We recommend speaking with 3 lenders and obtaining a loan estimate from each one. This step could save you thousands on your loan.
7. Choose Your Mortgage – You’ve come this far, it’s time to choose a lender and a loan product!
8. Avoid Pitfalls – From this point on you want to be careful to ensure you understand every document you are signing and don’t get yourself into anything you cannot afford. For more details on the best practices to avoid issues read the complete booklet, “Your home loan toolkit: A step-by-step guide.”