Suze Orman TwitterSuze Orman FacebookSuze Orman YouTubeSuze Orman LinkedIn
View Blog & News List

Suze’s Mortgage Tip #1: Shop Around

June 02, 2016 at 12:00 AM

It amazes me that so many homebuyers who spent weeks, if not months, hunting around for the best home, don’t shop around as diligently for the best mortgage. According to the Consumer Financial Protection Bureau about seven in 10 homebuyers just apply to one lender. That’s insane! This is likely the biggest purchase of your life, and you aren’t going to make sure you comparison shop to save money? C’mon.

Some mortgage shopping tips:

Set Your Own Budget. Do not get sucked in by a mortgage lender telling you how big a mortgage you can qualify for. That’s irrelevant. Before you even start shopping for a home, you need to put some serious thought into deciding what size mortgage fits your financial life. A payment that is so big it makes it hard or impossible for you to save for retirement, or save for a child’s education is a mistake. Rather than focus on how expensive a home you can qualify for, I want you to aim for the least expensive house that meets your needs. The financial flexibility you will gain by not over-reaching is going to make a huge difference the rest of your life.

Comparison Shop. Don’t assume your current bank is going to roll out the red carpet and offer you the best deal. I want you to apply at three different lenders. Ask friends for recommendations of credit unions and community banks; they often can have better terms than big national banks. And by all means, throw an online lender into your mix as well.

If you don’t want to put the time into comparison-shopping, consider working with a mortgage broker. A good broker-again, poll friends and colleagues for recommendations-will shop around for you.

The advertised interest rate is a good starting point, but you also want to compare all the fees you will be charged for the mortgage. The good news is that beginning last fall, lenders now must give all applicants an easy-to-understand three-page Loan Estimate once you provide basic information.

Work with a Closer. When choosing a lender you want to go with someone who has a solid track record of getting the deal done ASAP. Some lenders can take for-ev-er to finalize a mortgage. That can cause all sorts of problems. When you make a bid on a home, you typically will agree to “close” within a specified period. In markets where sellers can choose from multiple bids, their agents will likely encourage them to consider offers that have financing from a lender who gets the deal done on time. Real estate agents can be a good source of intel: they know which lenders get the job done, and which drag their feet.

Tag Cloud

confident of solutionraise insurance deductiblecompare provider pricingdon't defer interest paymentstax refund fraudlive below your meansCredit Card Rate Increaseprovider of financial supportcostly legal high down paymentaffordable premiumMust Have DocumentsFICO Scorezero rate transfer dealsmanage student loanspublic service career student loan repayment Pay Off Debt Before Retirementhealthy retirement weight20 to 25 times annual incomeschool low-cost index mutual fundBaby Boomers15-year refinance dealemergency fund savings!00% tuition paidkeep a scheduleadult childrenCivil RightsBeautyDeath Benefitcnbc alarm clock6 month waiting periodtax ID theftInterestquick closingwomen outlive menHSA tax savingsdangerous retirement planUrbana-Champaignno negativityCNBCcalculate dependents annual income needsmax employer matched 401(k) contributionno sneaking in feesopen enrollment review purely financial standpointhome buying mistakesdo not pay allowance for good behaviorfile taxes quicklyno tax on withdrawlsCOLAno late fee reduce withholdingbetter loan ratesretirment savingsdeath benefit 20 to 25 times annual incomeloved ones dependent on incomeraise deductiblesFinancial Awarenessworst financial mistakeFederal Funds Ratesummer job match income not gender specific lowest cost fund optionno retirement funds for down paymentPhyllis Shelton expert long-term carecouple financesstudent loan repayment plankids schedule paymentsoverspend on giftslong term goalSelectQuote.comMortgage Credit Availability Indexcostly insurance mistake8 Rulesgift grandchild IRA contributionmonthly dental insurance premiumPBS Specialenjoy saving CPI-Wpremiumteens and moneyLong Term Care Insurance Gay RightsInflation BenefitVeterinary Schooldon't ignore open enrollmentno waiting periodlow down paymentSuze Orman's Money WarsMoney-Savingretirementteach your child good money habits740 credit scoreborrow each year, capitalization is going to pile up universal college accesshealthy teethpermanent life insuranceGraceConventional loan PMIpay credit debt ASAPRetirement Savingspush yourself to save more for retirementresponsible with moneyMass Mutuallearn good financial choicesbe good examplereduce interest ratecar buying mistakesfamily save at least $100 monthlyignore 6 month grace period cut monthly cable billprotect your familywaive home inspection biddangerous money seasonkid borrow firstFinancial Advicepercentage of women widowed 75-84stay positiveemployer funding HSAthree year car loanfile asapPost-DivorceSpendingcut monthly cellular billtraditional vs roth 401(k)car loanCory BookerFinancialpoint cost offset by savingsCombo Insurance Productsincrease retirement savingschildren's bookcomparison shoppingGifts20 year level term rising home pricesFinancial Clifffinancial goal phraseretain separate credit cardsnot enough life insurancechildren under 18negotiate points with bank or sellerrefundmeet monthly 8 month safety netFinancial Gift Cliffdon't extend mortgage focus on new truth better loan dealsunder 18 financial giftJose Rodriguezsetup automatic savings withdrawcredit unionone credit cardFixed Rate Mortgagepaid in fulladjust allocations women longer life spancredit card2017 TaxesHDHP's are good for youbuy down HDHP no splurge standard deduction consider roth 401(k)Amy LacyetSwap Older Annuities or Life Insurance One Wallet At A TimeVital Documentsnon conventional routeAshley Springercontribute household expenses wives should be involved in retirementSandy Hook Elementary SchoolSandy Hook Promise401Kget credit cardhigh deductible health care planMinor Children don't buy wants20% down paymenthigh premiumssecured cardclosing disclosureconfidentEasy Life Insurance Willwould you decline a bonusno fee transferpay high rate off firstlousy investmentPersonal Financecreate new truthrequired disclosurestudent loan repaymentGiftmortgagefinancial argumentshealthy retirement blood pressureemployer offered life insurancefinancial fearsbreakdown projected monthly housing costpreexisting condition not coveredlower interest ratebuying a carcost of capitalization calculatorfraudulent returnannual cost of living adjustmentFiscal ResponsibilityETF'sloan no longer than 36monthsmortgage interest tax deductionFinal Goodbyeorigination feesdoctors in networkget health insuranceis it kind?long-term care no apologybe kind to yourselfCredit scoreSuze is my biggest mentorface your financial fearlong term careburn outLTCi ASAPfinancial aidStudent Debt Crisiscredit reportWarner Bros Television GroupNew american Dream highest possible benefitanticipated salaryCollege of Veterinary Medicinevalentines dayLoveincrease emergency savingsdeath benefit needs for familytitle insurancePrime Rate Rise 2015planhigher monthly paymentdebit cardcompare monthly expenseshome budget after tax costpublic service loan forgiveness programmoney vowsThe Suze Orman Showrent vs buy8 month emergency fundlower overall drug costUniversity of IllinoisHigh FICO Score = Better RateHoliday Shoppingspring summer Bill and Pennyaccelerate dental workinitial tax break Selfishbe true to yourselfaffordabilityis it necessaryautomate student loan paymentsdebtstore credit cardsderailed planfinancial independencestudent loan repayment estimatorAuto Savings don't derail retirement savingsphysical healthfederal student loan deferment ARMtaxesSchool of Social Workpaying for collegehome insurancecharges on credit cardCiti Simplicity Card unexpected expensealways use all paid time offstudent loan debtForeclosureCD'sallowance tasklow credit scoreteach importance of helping othersSuze approvedMarlo Thomasstrained relationshippowerfulcan you afford itno interestSave Us MoneyMotherbig results Revocable Living Trustdental savings planFinancial Solutions For Youbecome member women live longerincreased auto insurance premiumcommunity bank50 over 50earn more on savingsno life insurance financially irresponsibleescrowBankCredit Card Interest Rate2015 record year car salesLifestylefinancing car HeartgraduationRichat worst still pay 75% benefitcollege studentEmergency SavingsSatisfyinglife insuranceritual scheduleWall Streetitemized deductionSuze Orman Scholarshipbetter termsbest interest ratesinterest on student loansEric Dodge back door Roth IRAavoid burn outmortgage brokerdental insurance insurance yearly reviewOverspendingmobile appschedule vacationLegal GuardianInfluential Celebrityonly offered while employed retirement accountsCommunication Skills Federal PLUS loanleave a legacyRoth 401(k)know before you owehealthy youWashingtoncollege graduateemotional stakeshigh credit score discounthealthy gumsdream schoolapproved medical 100% tax-freeFundsreplace permanent life insurance with termForbes Top 10focus on needslower rateStudent DebtAmericans don't use all paid vacation timeHDHP'sAdequate Auto and Home Insurancelet them have 50% controlmake saving a pleasureLong Term Care shoppingExhibitionprescription tierbad decisionsstaycationonly refinance if it paysjuggle multiple financial goalsshorter payback periodAARPcredit managementrepay student loans3 bucket approachget the most out of social security protect dependent Financial Educatorretirement planCommencementlower premiumultimate compounding gifthigher insurance deductibleadvice for college graduatesclosing feesproperty taxmortgage disclosurepay 100% cashsocial security not going brokebuy homeinsuranceiffy incomeraising mortgage rates savings pleasureMost Influential Celebrities ListFRApeace of mindyours, mine & oursautomatic paymentwrite new goalhigh FICO score10 year repayment plan raise your deductiblepresident Obamamax benefit coveredgift up to 14,000special saving accounthousing marketUniversity of Floridaprotect loved ones same-sex marriageSuze Orman spouse Kathy TravisHow To Build Creditcredit utilization rateback-to-school budget3% debt transferred value moneycommit30 year mortgage AccuQuote.comnew cargay marriage ban end Florida same sex marriage band end FloridaFHA loan feesRetirement Incometoo expensive schoolloan big picture FICO at least 720home related tax break bonus require chore in exchange for allowanceFICO credit score credit card mortgageno private loansmaintain standard of livingInfluentials40% toward financial goalGay Couplesloan necessityFinancial Systemhome loan credit score below 740 overcome financial fearsdon't blow tax refundStudent LoanHoliday Seasoninsurance mistakelife insurance name trust as beneficiaryloan is giftHDHP's are not baddon't cover cosmetic dentistrydo you need life insurancebuy home you can affordIRA contribution gifted moneysave Durable Power of Attorney for Health Careverify wellness screening and programs4 Must Have Documents stretch out haircut appointmentsfinancial concernsecure creditdear suzeHDHP/HSAadd teenincrease retirement contribution rateRevocable Trustbuying car 2016successroth iracontribution switch to spouse coveragejanuary billspay off debtemergency fund protect and provide for minor child save moneydon't spend television hostMoneyborrowing plan doctor no longer in network2016 adjust withholdingexercise reguarlyidentity fraudreferrals eight month living expense don't charge a pennypercentage men widowed 75-84short term goal social securityAARP Social security calculatormarriage inequalitylow mileage discountoverspend on nights outnear historic lowsincentives for health care wellness screeningdebt freeidentity theftrolloverFederal Stafford loanspeak new goal2015 financial roadmapstandard rateInvest for savings growth20% equityraising interest ratesholiday spendinghome buying budgetFederal ReserveHigh Credit Scoredon't do five year car loanpay interest while in schoolgift not loanARM Cautiondon't use allowance as bribeEmployer Matched ContributionSuze changed my lifeNew York Lifecar leasingpositiveallowanceshop online guaranteed level term policyresponsibleBankruptcyage appropriate chore401(k) ContributionsMoney Marketwomen long term careYoung Adult letter to suzeFinancial Power of Attorneygrandparent IRA contribution 3 step financial road mapheartachemarriage financial responsibilitypay down car loanbudgetis it necessary?term insurance15 year mortgageswitch to roth 401(k)paid vacationFree Debt Eliminatorfull retirement agefour steps to retirement savings get over life insurance phobiacommunity collegemax employee matchbalance transfer Forbesalternative FICO scorepay more than minimumis it true? workaholicterm life insuranceLTCclosing costs 2% of loansocial security never insolvent19 years cash flow problemreal estate marketsavingsverify retirement plan with HR or plan sponsorco-sign 2016 adjust estimated taxhome buying seasonhome ownershipdental discount planUS Tax CodeStaffords this year have a fixed 6.8% interest raterefinancereal estate mistakesautomatic withdraw to savings take actionsidelinedmental healthlower mortgage interesthealthy aging age appropriate goalsAlarm ClockHolidayno private loansocial workbad retirement planninglong-term care premiumsFinancial Awareness Video Festivalgrandchild summer job IRA contributionLTC shoppingTelepictureseliminate credit card debtbill paying prioritiesTeachoverspend on dining out10% donate to charityChanging LivesSuze Ormansmall changes unsubsidized Stafford loanNewtownGoodbyemultiple lendersbest loan deal monthly benefit teensmoney-aware child3 savings buckets one annual feePrime Rate Increaseinterest capitalizationLong Term Care premiumspay down student loan debtStock Investmentsstudentreduce monthly paymentdepreciating asset 20% down payment avoid feesearn allowance

View Blog & News List
People First. Then Money. Then Things.
Connect with me on Facebook Connect with me on YouTube Connect with me on Twitter
© 2017 Suze Orman Media Inc. All rights reserved.
 |  Search  |  Sitemap  |  Privacy  |  Terms
Sign Up For E-mail Offers
Open Panel
Close Panel