Finding the right mortgage lender is the most crucial aspect of your home purchase. It’s sad to say that finding the right mortgage lender is no easy task. It can be a confusing and time-consuming process if you are unprepared and clueless about the market. The fact that there are some mortgage lenders out there that is ready to accept your application does not help.
Since you will be committed to this mortgage for years to come, sitting down and educating yourself about your financial situation and the mortgage market can help you find a lender that you can trust. Here are some tips on picking the right mortgage that will work best for you.
Decide What Type of Mortgage You Want
Before you look for a mortgage lender, determine what you want and what you think is the best type of mortgage suited for your financial status. There are two types of mortgage: conventional and government-backed loans.
Conventional loans are the most common type of loan in the US. These are offered by private lenders, commercial banks, and credit unions. This requires at least 10% for a down payment and good credit history.
Government-insured loans are loans backed, either partially or entirely, by the government; and these are FHA loans, VA loans, and USDA. FHA loans offer a lower purchase price and suitable for first-time buyers. If you are a veteran or your partner is, then the VA loan is for you. You might consider looking into VA loans … Read More