You’re ready to take the plunge from being a renter to a homeowner. This transition is a new experience that’s full of challenges, from finding that perfect home to financing it. Before you pick out a fresh paint color, learn how to spot a great mortgage lender by following these simple steps. You’ll have a successful closing day as a result.
Start With Your Bank
Most major banks offer mortgages with competitive rates. Adults who’re currently looking for a mortgage will most likely have checking and savings accounts with an established institution. These banks are familiar with your income, withdrawals and other spending habits. They have records of possible late fees on file so they know if you’re responsible with money. With these facts in mind, look for a viable mortgage lender at your banking facility. Because they’re familiar with you, they can offer one of the best rates around. You might belong to a credit union too. These lending institutions are known for their competitive rates so keep that fact in mind as you shop around.
Be Ready For Several Interviews
Don’t stop your shopping process at just one bank. Ideally, obtain three or four different quotes from various institutions. You want to sit down with these banking representatives, and discuss the offers available in the marketplace. Evaluate how you feel with each professional as well. There should be a palpable comfort level with these experts so that you feel at ease during conversations. A mortgage is a major investment that takes time to sort out. Feeling uneasy with any professional only means that questions might be forgotten or failed to be answered. Seek out a mortgage lender that offers a reasonable rate with friendly help during the process.
Ask Hypothetical Questions
There are many time-sensitive parts to a mortgage, and your lender should be able to guide you through the process with ease. As you decide between lenders, ask hypothetical questions that can arise during mortgage processing. Extended closing periods, incorrect appraisals and other issues might plague your purchasing experience. Ask the mortgage lender if there are any solutions to these issues before they become real problems. Knowing the answers to your mortgage questions will only help you feel comfortable with the purchasing process and lender too. Don’t hesitate to ask any other questions as they arise because each one is important to the successful closing of your funded loan.
Consider Online Quotes
Your town might be limited to just a few banking institutions. To gain a wider perspective of the industry, look to online solutions. Some online portals allow you to fill out one application for several mortgage lender institutions. You’ll receive a list of potential lenders in exchange for some basic information. Read through the fine print very carefully because there are some quotes that may not be that straightforward. In general, you’ll see a mixture of quotes that might fit your needs. Compare these numbers to the mortgage lender that you interviewed in town. All of the quotes should be relatively competitive with each other.
Take Time to Explore the Options
A good mortgage lender offers several quotes for one purchase. You’ll see variations on term length, point options and percentage rates. The term length varies between 15 and 30 years on a typical quote. A longer term length tends to reduce the monthly payment, but the interest costs will be higher. The opposite is true of short-term mortgages. Reputable lenders also give you the option to buy points, which lowers the percentage rate on the loan. Most borrowers simply look at the percentage rate on the loan as an indicator of a good deal. While this remains as a solid indicator of a good loan, you still need to consider the other factors that ultimately translate into a monthly payment amount.
Be Frank About Fees
A mortgage lender is excited to fund a loan, but there are fees that tend to be glossed over at first. Don’t be timid when it comes to fees. Be frank about your concerns. Ideally, the lender should offer you a list of fees that cover the entire loan period. Appraisals, paperwork, processing and other fees are common in the real-estate industry. Waiving these fees isn’t normally possible because of costs originating outside of the lender’s control. If you don’t agree with the fee amounts, another mortgage lender may be able to offer a better solution.
Narrow Down Your Contact List
After you pick a particular mortgage lender, ask about points of contact. Calling into the facility shouldn’t be a difficult process. Ask for a representative’s direct line so that you can converse with the person whenever necessary. In addition, ask for a secondary contact if your primary person isn’t available. As a paying customer, you should have top-notch service every time that you call. Your mortgage will probably be the biggest financial commitment of your life so a simple point-of-contact is the least that a viable institution can offer you. These individuals can answer your questions and halt any misdirection with just one call.
Discover Ways to Improve Your Credit
A good mortgage lender also counsels you on credit. Your credit score is one of the most important aspects to your loan-approval process. If the score is somewhat low, loan representatives can offer solutions to help you with its strength. You might pay down a credit card or reduce your expenses in other areas. Lending institutions simply want a borrower who can steadily pay the bills without collections being involved. If you prove yourself through a high credit score, you’ll be greeted with low-interest rates and fierce competition for your business.
If you have any concerns about your mortgage choices, contact a trusted investment company. Evergreen Properties and Investments is a reputable company in Long Beach, California, and our professionals can walk you through any lending challenges. With an experienced mortgage lender by your side, a dream home isn’t far away.
From the Author: My name is Dan Barcelon and I believe that Real Estate can be one of the most valuable assets you’ll ever own. I’m dedicated to educating and guiding my clients on how to manage and leverage their homes to create an Evergreen legacy for themselves and their family. I primarily consult both home buyers and home sellers on reaching their personal and financial goals through Real Estate in the following cities of Southern California: Long Beach, Carson, Cerritos, Signal Hill, Torrance, Lakewood, Cypress, Downey, Bellflower, Norwalk, Wilmington, La Palma, and Artesia.
If you’d like to discuss if buying, selling, or investing in real estate is right for you at this time, feel free to reach out. You can call/text me at 562-270-5812, or you e-mail me at danb@EPIrealestate.biz.