Finding Your Perfect Mortgage

In today's topsy-turvy financial world, finding a perfect mortgage is a tall order. However, you can find a mortgage that fits your personal financial situation. It will take some research, patience, and realistic goals. Here are a few simple tips to get you started.

The quest for the perfect mortgage is hardly an epic journey. Unlike Homer's battles with the one-eyed Cyclops, or Don Quixote's tangles with rogue windmills, finding the right home loan is a slightly more mundane process. It requires methodically combing through a list of lenders, comparing loan packages, and seeking out the advice of friends and families. Use these tips as your guides along your not-so-epic quest.

Assess your personal situation

There are loan packages of every dollar amount and repayment term imaginable. The process becomes a lot less tedious if you know exactly how you want your loan to perform. If you plan to stay in your home for a long time, for example, choosing an adjustable-rate mortgage (ARM) may not be a wise decision. The interest rate on an ARM will adjust after an introductory period. As the victims of the recent subprime mortgage mess will tell you, if your home value drops, it may prohibit you from refinancing your loan when the ARM's introductory rate ends.

Staying in your home for a longer period of time may necessitate a fixed-rate product. If you feel uneasy about carrying debt, and you want to pay off the loan as soon as possible, choose a 15-year term instead of the longer 30-year package. You'll pay more on a monthly basis, but you'll save thousands of dollars in long-term interest.

Shopping in the market

Now that you have a ballpark idea of what kind of loan you're looking for, you can begin shopping. Thanks to the Internet and the phone book, you can look anywhere for a lender, and generally at any time of the day. You can call the lender down the street, as well as larger banks or credit unions in your general area. You can also search for "mortgage loan" on the Internet, and take a look at the various rate quotes.

Mortgage lenders: Finding a good fit

A mortgage is one of the biggest financial decisions you'll make in your life, and a lender will play a major role in the process. Call the top five lenders from your mortgage rate quote list. Ask for references, and consult with your friends and neighbors to ensure that the lender is reputable. Even if the pricing is a little more expensive, choose the lender you know who's reliable and customer-focused.

Your quest for the perfect mortgage has begun. There'll be no dragons to battle or mountains to climb, but the stakes are nevertheless very high. Take your time and make a diligent, calculated search. You may not find a perfect mortgage, but you'll find the one that's right for life's long financial journey.