Finding The Right Mortgage Lender For Your Needs
Finding a mortgage lender is part of the homebuying process. This task can be intimidating as there are many mortgage lenders to choose from. Choosing your lender wisely is key to your home buying process.
Having a mortgage lender by your side to help you through the process, answer all your questions, be available, and be trustworthy is important. Here are a few things to consider when choosing your home mortgage lender.
Shop Around
Never go with the first offer. Studies have shown that those who compare at least three different rates and offers will save money in the long run. Ask a trusted friend or family member, or Google search to see reviews and testimonials of any particular lender.
Set a meeting with at least three different lenders and see what they have to offer. Come prepared with questions about rates, terms, assistance, housing programs, etc. Sometimes different lenders will run different promotions. Take advantage of these promotions and make sure to ask about the First-Time Homebuyer Program.
Determine their Mortgage Loan Options
There are several different loan programs out there, some more well-known than others - such as VA Loan, SDH’s First-Time Homebuyer Loan, FHA Loan, Conventional Loans, Repeat Homebuyer Loans, and Jumbo Loans. When exploring your options, be sure to ask what they offer, and don’t feel obligated to go with only what they offer.
Ask the Right Questions
Create a list of questions to ask your potential mortgage lender. Remember you’re interviewing them as they want your business. Here are a few questions to ask:
What are interest rates and APR?
Are their income requirements for buying a house?
Do you offer preapproval or prequalification?
What downpayment assistance do you offer?
What will closing costs be?
Are there prepayment penalties?
Do I need mortgage insurance?
How long of a process will this be?
Shopping around for the right mortgage lender for you is an important step in the process. This person needs to be your trusted advisor. Remember they are earning your business. Finding the right lender is crucial for a successful home purchase. They should offer good rates and help you through the process, as this is a major investment in your life.
