If you're looking for a mortgage, there are a few guide or steps you can take to make sure you're receiving the best deal on a mortgage possible:
Get a Fixed Rate Mortgage.
Even though adjustable rate mortgages can initially have lower mortgage rates, they can quickly increase according to the current market conditions. In order to keep a steady rate, get a fixed rate mortgage so you can lock in the low conditions for the duration of your loan. When you get a fixed rate mortgage, you will also pay the same amount of interest consistently throughout the lifetime of the loan.
Consider Paying for Points.
This can be an attractive option depending on how long you plan on staying in the home. A point is an upfront fee that allows you to lower the interest rate by a certain amount. If you're going to stay in the home for five or more years, it makes financial sense to buy points so the benefits outweigh the costs.
Shop for Closing Costs.
Closing costs usually represent 3% of the home's purchase price, but can dramatically vary from lender to lender. Make sure to shop around for your home loan so you can get the best possible deal on your closing costs.
Put Forth a Large Down Payment.
It's simple: the larger of a down payment you put down, the better rate you'll get on your mortgage. The reason for this is that you represent less of a risk to lenders when you put forth more money. It's well worth it to save up as much as you can for a down payment to save yourself some money down the line.
Shop For Special Programs.
One of the easiest ways to get a good deal on a mortgage is to see if you qualify for a special program such as a VA loan or an FHA loan. There are a lot of programs for first-time homebuyers as well as programs for those who are currently serving or who have served in the military.