The Federal Reserve Board has published a new guide titled, “5 Tips for Shopping for a Mortgage,” aimed at helping consumers avoid potential pitfalls and make well-informed decisions when choosing a home loan.
The Federal Reserve’s latest "5 Tips" guide is designed to help homebuyers find the mortgage that is best for them. As a starting point, consumers are urged to conduct a financial self-assessment that includes scrutinizing their budget, checking credit reports, and reviewing credit scores. The guide directs consumers to a worksheet for developing a monthly spending plan and strongly suggests setting aside funds for emergencies.
The publication recommends taking the time do some comparison shopping by analyzing loan offers from mortgage lenders and mortgage brokers. It also explains the difference between brokers and lenders. "5 Tips" explains that learning about the risks and benefits of various types of mortgage loans is critical to obtaining and sustaining the right mortgage for a family's budget.
Additionally, the guide advises consumers to take advantage of additional information from other Federal Reserve publications, resources and websites.
See press release for full details.