How to find the best deal when shopping for a mortgage

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Miles Kimhan
(NMLS# 364852)
President of CU Network Services (NMLS# 375459)

The prevailing low mortgage rates have caught the attention of many potential buyers looking to become first time homeowners as well as current homeowners looking to refinance. However, it is important to know that choosing the right mortgage involves more than just comparing interest rates…the lowest rate may not necessarily be the best deal. Choosing a lender who will help you analyze all the costs involved in taking out a mortgage loan can potentially save you thousands of dollars.

The home loan specialists at CU Network Services have a combined total of more than 60 years experience in the mortgage lending industry and have guided numerous home buyers from pre-qualification to final signing.

Here are some of their tips on what the borrower should be considering when shopping and comparing mortgages.

Points

Points are fees paid to the lender that are often linked to the interest rate. Most lenders will offer a variety of rate and point combinations for your loan product. Each point is equal to one percent of your loan amount. Points are a key factor in evaluating the mortgages offered by various lenders.

Fees

Among the many fees involved in a mortgage transaction are the loan origination, underwriting fees, title and escrow charges, and closing costs. Every lender should be able to give you an estimate of its fees. It is important to ask what each fee includes as some lenders may have different names for their fees or may group several items into one fee.

Maximum Loan-To-Value (LTV)

The lender’s maximum LTV will determine how much of a down payment you will need. It may also decide whether mortgage insurance will be required for your loan. Generally, mortgage insurance is needed only if the down payment is less than 20 percent.

Lock-In Period

The lock-in period is the time in which you will be guaranteed the rate and points you were quoted. Lock-in periods are commonly 30, 45, and 60 days. Some lenders offer only short lock-in periods, so make sure you will have enough time to settle and close your loan.

Comparing the mortgage loans offered by different lenders can be overwhelming, so it is important to find a lender you feel you can work successfully with and have confidence in. At CU Network Services, there is no application fee so you can sit down and talk with an experienced loan officer who will get you all the information you need and guide you through the mortgage process.

To set up an appointment with a loan officer, please call 529-4599 or stop in at the office at 681 South King Street. You can also obtain more information online at www.cunetworkservices.com.

Locations Hawaii
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Kimo Smigielski, Broker-in-Charge
R, ABR, CRS, GRI, e-PRO
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Mark Skeele, RS-77005