Applying for a mortgage is one of the most important parts of the home-buying process. It can be a make-or-break for what homes you are able to choose, as well as for your finances in the future. Use these 4 tips to get the best mortgage lender for you.
1. Know Your Options
Before You even think about choosing a mortgage lender, you’ll want to know what’s right for you. There are several different types of lenders, the most popular ones being credit unions, mutual savings banks, mortgage bankers and correspondent lenders. Doing research on various available lenders is key in getting a good loan.
However, if you’ve done your due-diligence by hiring a top-notch agent, there’s a good chance they already work closely with one or more lenders. This existing connection will expedite the process, reducing costly delays in getting a loan.
2. Compare Rates From Different Lenders
If you’ve decided to look for more options besides your agent’s preferred lender, getting pre-approved by multiple agencies will allow you to compare rates from different lenders. Comparing the rates between various lenders can help you get a better idea of what type of loan you are able to get, as well as what lender out of your options has the best terms for your situation.
3. Ask The Right Questions
Once you’ve narrowed it down to a couple of lenders, it’s time to start evaluating the choices. Contacting each lender and asking the right questions will help you determine which one is the best for you. Questions like
- “What down payment will be required?”
- “Will certain fees be rolled into my mortgage?”
- “How quickly and on what platform do you respond to messages?”
- “What will take place online and what will be in person?”
- “How long does the process typically take?”
These questions, among others, can be a great way to both learn more about the lending process, as well as gain knowledge about your potential mortgage lenders.
4. Read The Fine Print
This applies to everything, but especially when it comes to a mortgage loan. Of course, reading a mortgage loan entirely is easier said than done. However, the key details you’ll want to look for are the prices and terms of the loan. This includes what items come with the house, how much closing costs will be, the interest rate, and more. Checking this ensures that there were no errors made or unexpected costs.
Check for misspelled names and other incorrect personal details, as this can save you a lot of trouble down the road. As well, certain costs like the down payment and interest rate shouldn’t change much from your pre-approval, as long as your credit has remained steady.