Lining up the financing for your New Jersey home may not have the same appeal as picking out flooring, countertops, or other options—but it’s an important part of the whole homebuilding process.  Here are a few things to keep in mind as you focus on the “money matters” part of purchasing a new home.

Rates can change.

Mortgage rates haven’t fluctuated much over the last 12 months or so—and that’s nice for borrowers because the rates have stayed very low. But there is no guarantee that they will remain low. Most prognosticators expect rates to rise—but at this point nobody is willing to say when that will happen.

A 30-year, fixed rate mortgage may not be the best choice.

Even though this vehicle has been the standard for years, it’s actually an expensive option. The rate is generally higher and you pay on it longer. Other options (such at a 5/1, 7/1 or 10/1 adjustable rate mortgage) may make more sense—particularly if you don’t plan to stay in the house for a longer time.

Don’t get scared off by requests for documentation.

There is a lot more scrutiny these days when it comes to securing a loan and the documentation can seem overwhelming. But don’t let those requests scare you off. Rates can (and do) change rapidly, and if you don’t have all your financial “ducks in a row” you can miss out on good rates. Prepare yourself before you go looking for a loan.

Watch out for hidden charges.

Sometimes lenders will compensate for a low rate by adding on points or closing costs. That’s why it’s a good idea to insist on receiving (and reviewing) a breakdown on any closing costs before you sign.

Compare apples and apples

Because rates can change from day to day (or even more frequently), it’s a good idea to line up several lenders and compare them at the same time. That gives you a more realistic comparison of the different lenders.

These are just a few things to keep in mind as you shop mortgages. We’re not financial advisors (or lenders) so it’s a good idea to consult with a professional on these matters. We’d be happy to have you talk to our preferred mortgage lenders about any questions you might have when it comes to securing the load that’s right for you.