Tips for Choosing a Mortgage for a First-Time Homebuyer

Getting a mortgage can save you a considerable amount of money. But before receiving it, you should compare the prices of the products available in the market because a slight difference in interest rates can cost you significantly in the long run. Therefore, it is suggested to compare the rates of several different suppliers. Also, by choosing mortgages at the correct rate, you can make significant savings throughout the year. So it’s worth the time.

How to compare mortgages among multiple options?

Your main priority is probably saving. So to find the lowest interest rate, you have to search a lot and spend much time finding the lowest interest rate contracts. But keep in mind that interest rates are not the only factor influencing mortgage choice, and applicants must consider other factors. You will also need to evaluate additional administrative costs. To do this, it is necessary to compare the conditions announced by each lender with their offered rates. Add the administrative costs of getting a mortgage with this amount. In this case, you can compare the mortgage cost, interest and administrative costs.

Find the best deal based on the mortgage associated rates and costs. It is recommended that you compare the rates offered by at least three lenders and make sure you find the best deal. Because rates can vary significantly from lender to lender, so you can provide more savings opportunities by searching for more lenders.

Lenders’ policies encourage first-time homebuyers

You should note that lenders usually change the prepayment and mortgage repayment numbers to make their products more attractive to the applicants. Therefore, it is better to compare different contracts in terms of time and equal costs to make the best decision. For example, some lenders offer discounts on their administrative expenses depending on your deposit amount. This can be exciting for applicants, and they must focus on mortgage comparison.

Comparison opportunity with other deals 

On the other hand, using data from different lenders can help you negotiate with them. So you can use this comparison as a tool for more bargaining. As part of these negotiations, you can probably reduce your mortgage rate to some extent. Keep in mind that even a small change in your interest rate can significantly impact you in the long run. Therefore, you should do your best to inquire from more lenders. It is advisable to contact several lenders to make sure you have received the best deal.

The role of mortgage brokers in guiding first-time homebuyers 

Brokers work with different lenders and have access to information about various products on the market. This means that by visiting one broker, you can compare multiple programs at the same time. The mortgage broker helps you evaluate the interest rates, administrative costs, and other conditions related to the mortgages available in the market. Meanwhile, you can also compare lenders’ terms and rates directly. But while different mortgage options are easy to reach, it will take a lot of time and energy to review them all. But mortgage brokers, given their extensive relationship with lenders, allow you to compare multiple deals simultaneously and can also ask for good discounts from lenders.

Advantages of using mortgage brokers

1- Brokers have access to different lenders’ programs and interest rates. They can provide better and more specialised products to those who need them.

2- Brokers can get good discounts from lenders according to the volume of contracts they have.

Disadvantages of using mortgage brokers

1- Brokers may have little effect on the underwriting performance of the lender.

2. Brokers may charge much money for the services they provide to borrowers. Also, each mortgage broker receives a different fee from the applicants. Therefore, before concluding the contract, you must talk about this issue with your broker in a clear manner. You have to know all the details of the fees received by your mortgage broker.

3- Closing the mortgages received by the brokers usually takes more time. So if you have a limited time to buy a home or close a mortgage, this can be a concern for you. By searching for wide variety products on the market, AWS Mortgages advisors will negotiate with many lenders and review the borrowers’ affordability. They can help applicants find the appropriate rates and conditions to enable them to compare. AWS Mortgages experienced advisors will do their best to provide information about the selected options transparently. Our advisors, with several years of experience working with various lenders and borrowers, are aware of the strengths and weaknesses of the proposed options and will set the right path for applicants. Contact them today to address your concerns as a first-time buyer.