Once you have successfully applied for and commenced repayments on a mortgage, you might feel content to kick back and enjoy the simple pleasures of owning your own home.
However, a mortgage is expensive to maintain. So, you should be aware of how you can optimize your deal and squeeze maximum value out of your agreement with your lender. To that end, here are a few tips on how to achieve this.
Consider switching to get a better rate
One of the least frugal things you can do as a homeowner is to stick with the same lender for the lifetime of your mortgage. This will almost certainly end up costing you more than if you switched to a different package from a competing provider.
The best way to work out if switching is right for you is by comparing mortgage rates. Then, determine whether you are paying more each month than you might be if you made the leap.
Of course, there are some caveats in this case. For example, you need to make sure that any obligations to your existing lender have been fulfilled, or you could face a fee for ending your mortgage agreement early when you switch.
Check customer feedback & independent reviews to find the best service quality
Another aspect that might prompt you to change lenders is if the quality of customer service is not up to scratch.
Working out if sub-par service is on the table is tricky. Often it is not until you actually encounter issues yourself and thus have cause to put their reps through their paces. As such, You should always do a quick search for feedback from other customers online. Additionally, look for professional reviews of different lenders to avoid a tricky situation.
Avoid using credit before your mortgage has gone through
A common mistake made by first-time buyers is getting approval for their mortgage, then, while they are waiting to close on their dream home, take out fresh lines of credit. This not only overstretches your finances but could also jeopardize your chances of getting the mortgage when the time comes. Remember, lenders carry out credit checks before closing to make sure that you are still a good prospect.
It may be tempting to splash out on furnishings for your new home or make other major purchases on your credit cards in this period of limbo. But, resist the urge if you want everything to go smoothly, and start spending once you are actually in.
Mortgage bundles can deliver decent savings on key services
Most lenders who offer mortgages are also capable of courting customers with a range of other services. Often these services are essential or at least very important once you become a homeowner.
Because of this, you could actually negotiate significant savings. Especially on things like home insurance and life insurance if you decide to take out policies with the same brand that is handling your mortgage.
This is not always an option, but it may sway you in a particular direction. So, if you are struggling to choose between providers and one offers a package bundling in other services, it may be the best choice.
There are many other factors at play in determining the cost, quality, and value of your mortgage. Most of which are impacted by your personal circumstances as well as the location of your home. Because of all these variables, you should aim to do as much research as possible. This will enable you to find a mortgage deal that works for you.
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