You need to differentiate between good and bad advice and that is going to make a difference. Before you decide upon the lender you need to do some homework. This will not only make life easier for you but will give you the best of the deals.
• Scout for the mortgage companies and collect their schemes especially repayment terms, rate of interest and tenure allowed.
• Select the company which has the most beneficial scheme for you depending you budget and repayment capacity.
• Make a budget of your requirements for purchase of the house and include all the expenditure you would need to make it habitable.
• Go to the selected company and have it pre-approve the loan amount based on your documents and other papers. This way you will know exactly how much the lender is going to provide you.
Now that your funds are ready for disbursement talk to your real estate agent and hunt for the house of your choice and desire. Close the deal, Pay your share and ask the lender to pay the balance directly to the vendor. The title deed of the property is then handed over to the lender for completing the mortgage formalities. It is very important to choose the right lender who offers you the best of the terms. Things to be considered while choosing a lender are
• Rate of Interest: This must be your main criterion as even a one percent difference can save you thousands of dollars in interest alone
• Tenure of loan: Go for the maximum duration as the monthly payment will be low
• Variable repayment terms: Where available you must opt for variable repayment terms which mean you pay more as your repayment capacity grows over the years. This helps you in reducing your repayment burden in the early years
• Pre-payment charges: This will affect your choice as this is the cost to be incurred I you want to change the lender at nay point of time
• Penal charges: The amount charged by the lender for delay or default in payment.
The best advice any once could give is do your research properly.