Aside from picking the right house to buy, one of the most important choices you will make is picking your mortgage lender.
Usually your real estate agent will have the names of a few of them that they use on a regular basis. That’s a good start. But don’t stop there.
It pays (literally as well as figuratively) to shop around for a mortgage lender.
Of course, we think our home loan specialists are great choices, and you can check out our latest rates here. But shopping around is important since you’re committing to a very big, very long-term relationship. And with all the things to do once you move into a house, refinancing is not going to be a top priority in the near term.
Make a good decision from the start and it will pay off for years to come.
Ask for the mortgage broker’s experience, especially if you’re a first-time homebuyer or looking to qualify for an FHA, VA or USDA loan. And if you don’t know what those types of loans are, then see how well the lender can explain them to you.
You also want to make sure that your mortgage lender is someone who you like to work with. Are they friendly and courteous? Are they comfortable explaining the process to you? Do they get right back to you if you have a question? Are they concerned about making sure you understand their answers regarding the process? Do they make you feel like your business really matters to them?
You’re going to be working with this person for quite a while, so make sure you’re not setting yourself up for added frustration and confusion.
When you narrow down your list, ask the potential mortgage lenders for a Loan Estimate. When you apply for a loan, your mortgage lender is required by law to give you a 3-page document called a Loan Estimate that spells out all the terms of your mortgage – monthly payments, taxes, closing costs, negative amortization, etc. They must provide it to you within 3 business days of your application. It’s a great help in comparing your finalists’ offers on one standard form.
If you found this information helpful, you may also want to check out these articles:
- Tips for First Time Home Buyers
- Improving Your Credit for a Mortgage
- How Much Mortgage Can You Really Afford?
Lost? Contact us for a reliable guide through the home buying process.