How to Select a Mortgage Lender
You’ve been saving up for that down payment, your credit looks great, and you’re finally ready to buy a house! That’s amazing! But now what? Before your realtor begins taking you to properties, you want to ensure you’re pre-approved. The pre-approval process is vital because it means you’re ready to go immediately, and you don’t want to lose the home of your dreams because you didn’t do the paperwork until the last minute.
To get started on your journey, you’ll need a mortgage lender. One of the most important steps to buy a house is finding a mortgage lender that fits with you and your financial situation – someone who will work with you and your family to ensure you get the best home possible for the best price. Here are a few tips for seeking out the best lender.
Good Reviews
First and foremost, you want a lender with a great reputation. If you’re able to ask around to friends and family who purchased a home, see what their experience was with their lender. If the consensus is that the lender was difficult to work with, you should pass them up. Check Google Reviews, as well, or ask in your local Facebook community page. Your realtor will also have suggestions, but you should never go with the first person suggested. Do your research and see if they’re a good fit for you.
Interest Rate
Another reason to shop for the best lender is to ensure you get the best interest rate possible. Just as you would for a new car, do your research and see where you can get the lowest price available. You can search online for current mortgage rates in your area, then compare those to the numbers you’re given from different lenders. However, just because the interest rate is low doesn’t mean you’re spending the least amount of money. Each unique lender will come with their own set of fees. Inquire about each of these and what that money goes toward, so you don’t find yourself in a bad situation with hidden financial commitments.
Programs
If you’re concerned about your financial situation, look for a mortgage lender who will work with you to suit your specific needs. First-time home buyers buying a fixer-upper can take advantage of loans built for this situation, where less money is needed up-front. That means you can save up for any unexpected repairs or emergencies your new family may have. You may also be eligible for other programs that can save you money, which is why you should connect with the right lender who can walk you through the best options available to you.
