You bought a house. You love it and got it a good price for it. Now is the time to shop around for a mortgage. Wrong! Before you set out to search for a home, you should have shopped around for a mortgage and be pre-approved.



With so many different lenders and mortgages out there, it pays to enlist the help of a mortgage broker. The broker will help you determine the best type of mortgage for you and will shop around on your behalf for the best possible deal. Your broker will protect your interests and sort through the various lender offers. Beware of no-money down or 5% down loans as they can have higher interest rates and other associated costs.

Shop around for a good title company. Their fees can be quite high so make sure you carefully review what you are paying for. They sometimes tack on ?rush delivery charges? of $50 to deliver papers across town. The same applies for insurance.

Be prepared for the closing costs which can run you a few thousands of dollars. They can include mortgage insurance, title expenses, lawyers fees, land transfer taxes, property taxes, etc. You should also budget some money for moving expenses, possible storage rental, paint and decoration, etc.

When shopping for a home, you may be offered to assume an existing loan on the property. This can be very advantageous, especially if the seller has a low interest rate on the loan. In other cases, you may be able to negotiate to have the seller pay a portion (or even all) of the closing costs.

We all know that the last few years have been a seller's market, however the situation is changing and the buyers are once again in the driving seat in many markets. This may translate into some better prices but also potentially better terms. This can be true even in a seller's market if the seller is in a rush to offload the property because of a divorce, death in the family, layoff, etc. In both cases, you may be able to negotiate a better deal.

As with any large transaction, how much homework you do at the beginning will determine how good a deal you will get. Enlist the help of a good real estate agent and mortgage broker who will look out for your interest and save you time and money. Shop around for the best rates and prices possible for the various services you will use to complete the purchase of the home. Make sure you plan for closing costs and moving expenses. If you do all this, buying your new home will be a breeze.