Don’t just shop for a home, shop for a loan!

When I am helping a Buyer search for Oahu real estate, the subject of the mortgage always comes up.  Indeed, it’s one of the first things I want to learn about my Buyers because it tells me how much house they can afford, and hence what Oahu real estate we should be looking at.

Consumers will spend many months searching for the perfect home, but when it comes to shopping rates and closing costs for a loan, nearly half don’t shop around and call other banks to compare rates and closing costs.

This Oahu real estate is under contract and will close in May 2020, for $705,000.

Here is an  example of potential savings — on a $200,000 mortgage, if the consumer were to obtain a mortgage loan at a half-percent point (.50%) less, they could save approximately $3,500 over the first five years, and much more over the course of a 30-year loan.  For Oahu real estate, where our median home price is close to $800,000, this could mean an even greater savings. 

Here is a link to the mortgage tools on the Consumer Financial Protection Bureau: CFPB Owning a Home.  I always tell buyers of Oahu real estate that it is just as important to shop for the loan, as it is to shop for a home.  You can always get pre-approval from one Lender, and actually apply for the mortgage from another.  Importantly, during your Oahu real estate search, you’ll want to keep an eye on the fluctuating interest rates — waiting a day to lock could save you a quarter point, or it could cost you a quarter point.

All information is believed to be reliable but is expressly not guaranteed.  This blog post is not intended to provide legal, tax or mortgage advice and readers are encouraged to check with licensed professionals for advice on any specific topic and to verify any information herein.