When you’re buying a home, the mortgage process can be daunting – even for experienced buyers.
Between choosing a lender, applying for a loan, and working with a real estate agent to find your perfect house, there are many details to keep track of. Even if you have previously purchased homes or condo units in the past, this market keeps changing.
If you are looking to buy a home but don’t know where to start with financing, you may want to look into getting pre-approved for a mortgage loan first. Doing so will help you understand what kind of loan you qualify for and give you peace of mind throughout your house-hunting process.
Here are some tips on things to look out for when choosing the best mortgage lenders near me:
Reputation
Before you even start talking to lenders, you should do your research on the reputation of any company that you are considering working with.
Bad reviews or negative comments can give you insight as to how others felt about their experience working with a specific company. At a minimum, you should read reviews from past customers on sites like Better Business Bureau to get a better idea of their experience with the lender.
You can also ask friends for recommendations or from real estate agents you are working with – especially if they have used the same lender in the past.
Loan Options and Rates
When shopping around for a mortgage lender, it is important to look into the types of loans they offer. You should ask yourself: what type of loan do I qualify for? What are my options when it comes to rates and closing costs?
Ideally, you want to work with a lender who offers you a variety of loan types. Doing so gives you more options when it comes to interest rates, fees, and payment plans after you close.
You should also ask to see a sample loan estimate (LE). This will help you better understand the costs of each loan type and can help you choose the right loan for your needs. Use the loan estimate to have a rough idea of your estimated monthly payment and how long it will take to pay off your loan in full.
Responsiveness
You should expect to hear back from your lender within 48 hours of submitting your application. Ideally, you want to work with a lender who is responsive and able to answer your questions in a timely manner.
You can also look for a lender who offers additional support services, such as a hotline for questions or a live chat feature for quick answers.
Transparency
The mortgage process is often confusing and stressful, and you want a lender who will be upfront and transparent about their practices and policies with you throughout the process – especially when it comes to rates and fees.
They should also make you feel comfortable enough to ask any questions about rates and closing costs you may have, especially in regards to information on rates and fees up. You don’t want to be in the dark about the charges.
Borrower Protections
As the borrower, you want to make sure that you are protected and have the necessary information you need if the unexpected happens.
As such, you should look for a lender that offers you protection in the form of insurance coverage, such as Federal Housing Administration (FHA) and Veterans Administration (VA) mortgage insurance. This coverage protects you in the event that the lender doesn’t pay off your loan or go out of business – which unfortunately happens more often than you might think.
Work With Only the Best Mortgage Lenders Near Me
Getting pre-approved for a mortgage loan is a great first step towards buying a house. It tells sellers that you are serious about the purchase and lets you negotiate based on your ability to borrow at a particular price. As such, your mortgage lender is one of the most important people in the home buying process so make sure to choose wisely.
