It seems that lenders are a dime a dozen and they have one thing in mind, making you miserable until the process is finally over and you sign your life away. But, it doesn’t have to be that way. The key to finding a good lender is doing your homework.
Here are some Ten Tips for Finding the Right Mortgage Lender to help you make the right choice:
1. Compare not only interest rates, but other related fees and charges. Federal regulations require lenders to show you the net lender charges which include origination fees, points, lender fees and any credits being offered. So, no points doesn’t always mean you are getting the best deal.
2. Consider a credit pre-qualification from your lender. It will determine how much you home you can afford and speed up the mortgage process and negotiations once you find a home.
3. Understand your credit. Consumers can obtain a free credit report for from www.annualcreditreport.com before beginning the process. Your credit history may affect the interest rate charged, and the type of loan programs that you qualify for. While your credit report data file is free, you may want to invest the small amount required to determine your credit scores.
4. If your credit score needs improvement or your loan officer tells you that you do not qualify for any existing loan programs, ask if you may benefit from credit counseling services.
5. Saving money for down payment and closing costs is perhaps the biggest barrier to purchasing a home. If this is true for you, ask about low or no down payment options, or if there is grant money available in the locality where you wish to buy.
6. Inquire about all types of mortgage products offered by your lender. Discuss these options with your loan officer to determine what may work best for you.
7. Become familiar with mortgage-related terms like Annual Percentage Rate (APR), Private Mortgage Insurance (PMI) and Funding Fee (FF).
8. Attend a home-financing seminar to gain a clear understanding of the process. Workshops are offered routinely by lenders, non-profit agencies and governmental agencies. Most are free but require preregistration.
9. Ask for a list of what to bring to application. Having the correct documents ready may help secure a faster loan decision.
10. Choosing a lender is ultimately your decision, but an experienced Realtor® opinion can help your narrow the choices because they have experience with the best lenders in the marketplace.
Selecting a lender may seem daunting but when you are ready to do so, call Karen Dowell Real Estate Solutions to help you. You can reach Karen at (434) 531-6948, email@example.com or visit her website at www.karendowell.com.