Think the lowest interest rate means you’re getting the best mortgage? Not necessarily.
When you’re buying a home, especially your first home, there’s a lot more to compare than just the interest rate.
First, look at closing costs and lender fees. Sometimes a lower rate comes with points or additional fees that you’re paying upfront.
Next, ask about first-time buyer programs and grants. You may qualify for assistance that could save you thousands of dollars.
And most importantly, look at the whole monthly payment — not just principal and interest. Your payment may also include property taxes, homeowners insurance, and mortgage insurance possibly
So when you’re comparing lenders, don’t just ask:
“What’s your rate?”
Ask:
“What is this loan really going to cost me — upfront AND every month?”
A good lender and Realtor should help you understand the entire picture before you make a decision.