Whether you are a first time home buyer or a seasoned veteran it is important to do your due diligence when shopping for a mortgage for your home.

Since most people pay off their mortgage over a 20-30 year period the slightest reduction in interest rate or monthly payment can save you thousands of dollars in the long run so do your homework and negotiate the best deal possible.

5 Tips for Home Mortgage Shoppers

1. Get your credit score. By knowing your score you can be aggressive when negotiating an interest rate.

2. Be educated. Make sure you know at least the basics of a mortgage before talking with a lender so you will understand the lingo. There are many different amortizations, terms, fixed rate, variable rate, payment frequencies, accelerated payments and pre-payment options.

These may sound complicated but a few Google searches will clear it all up…it really isn’t rocket science.

3. Go shopping. Be sure to talk with several lenders as they all offer different products, rates, options and even closing fees. The more lenders you talk to the more comfortable you will feel making a choice.

Many people feel lenders are untouchable and what they say goes… this is not true. In many cases I have negotiated a far better rate by simply asking and stating my case.

4. Consider an FHA mortgage. Federal Housing Administration mortgages allow for a smaller down payment and typically come with an easier criteria for qualifying. FHA mortgages require mortgage insurance to protect the lender in the case of default. This insurance is an additional cost to the borrower so be sure to factor that into your calculations.

5. Lock your rate. Mortgage rates are always moving up and down so when you get a good rate from a lender be sure to have it locked for a period of time. This allows you time to close or finalize your the financing during the lock period protecting you from interest rate spikes.

Be educated…take your time…pay attention to details…follow the tips above and enjoy your new home.