Let's Take a Look at Some Personality Types and�Learn by example.
First, let's follow some personalities when looking at mortgages.
Personality Type #1 - The "Practical" One
Practical buyers will take time to weigh the pros and cons of fixed rate and variable- rate mortgages. They will pick a mortgage based on their current and future needs. They will check out their company's credit union and a few other financial institutions before settling on one loan type. They will definitely shop around before signing. They will look for a loan that is tough to beat and that can be closed quickly. Move-in day will be here in no time for the practical ones!
Personality Type #2 - Fully Frugal
These types are determined to leave no stone unturned in their quest for the best deal on a mortgage loan. Scanning the Internet, yellow pages, rate sheets from Realtors, and the local paper, they get a clear picture of what different lenders are charging. Often they will like the idea of a fixed interest rate loan because the payments always stay the same. But if interest rates on 30-year loans are currently high, they may find a mortgage broker with a great deal on an ARM loan that's lower than the best fixed rate loan.
Personality Type #3 - Sloppy Shoppers
These types are normally so busy, they don't have much time to shop around. They are often afraid to approach other lenders because of their past credit problems, so they head to the bank where they have had their checking and savings accounts for several years. The loan officers are normally understanding and willing to arrange a 30-year, fixed-rate loan at a reasonable interest rate. Unfortunately, sloppy shoppers won't typically see the high points and fees until closing. These type of shoppers don't often get a good deal.
Personality Type #4 - The Wannabes
These personality types are so excited about getting a home that they will seek out the best deal for them�and even look at some alternative choices to get into the home of their dreams. They put a lot of pressure on themselves to save money on the mortgage. These types often use a buyer-broker to help them out. Wannabes may even look at assumable loans as a way to save. An assumable loan typically has great interest rates, and cost less on points and closing costs.
What Can You Learn from These Types? Shop Around!
Shopping for a home loan takes real effort and research. As you can see from the four personality types, smart homebuyers pick a loan according to their individual needs, then do some serious research to find the best deal. The lesson is, rather than choosing the first low interest rate that comes along in a Yellow Pages ad or web site, be sure to compare several lenders and explore all your options. The more you explore the more you save.
Now Let's Look at Mortgage Loan Types
And learn to shop for them.
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