The Best Way To Get The Right Mortgage

Are you thinking of buying a home? If so, then there are many things that you need to research first. For example, do you know what a mortgage is and do you know all the details of getting a mortgage? The more you know before you get into it, the easier the whole process will be for you.

If you've never owned a home before, you know that securinga mortgage loan can be more nerve wracking than you mightrealize. After all, just like you would need to prove yourexpertise to secure a job, you need to prove your creditworthiness to secure a mortgage. The problem is, if you'venever owned a home, how can you possibly convince a lenderthat your credit is good enough to qualify you for a homemortgage loan?

This means that first-time buyers often face higher thanstandard interest rates and other unfavorable terms on theirmortgages such mortgagee insurance. Yet many, manyfirst-time homebuyers or event people with poor credithistory enter the market each day, so there are lenders outthere that are willing to take the risk. There are lots ofmortgages designed specifically for first-time borrowers,with terms and rates that are flexible and not exorbitant.The trick is finding one of these lenders.

You could simply start going from major lender to majorlender to enquire about their fixed low-rate mortgages, buta far more sensible strategy involves finding a third partymortgage broker who represents a number of lenders under oneroof. Of course, just as there are literally hundreds ofdifferent mortgages to choose from, so too are therehundreds of mortgage brokers. It is far better to use theservices of a broker to help you ~cut to the chase~ and findthe right mortgage for you.

You should beware though - many mortgage brokers make theirmoney by working on a commission basis with the lendersthemselves. There are, however, independent brokers who arenot in the business of servicing lenders, but borrowersinstead. It's their job to help new borrowers to find a goodmortgage with low rates.

Lastly when you find a broker who has good relations witha number of lenders, it's easy to get a mortgage at specialrates and it is also easy to repay the loan at favorableinterest rates. In addition, when it comes time torefinance, you can generally use your relationship to lockin a much more desirable interest rate through a brokerthan through your current lender.

The author has learned the hard way how NOT to buy a house and secure a mortgage. Since then she has become an expert and helped thousands of people get the "right" morgage and purchase the home of their dreams.

Janine Monik is passionate about mortgages and is the webmaster of Flynn Mortgage