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 Fort Worth. USDA loans or RHS loans are for rural borrowers who are unable to afford conventional financing.
Experience is the best teacher, but considering you don’t have any experience yet in the mortgage scene, it’s best to ask the trusted people around you who have purchased a home for the recent years. Ask what mortgage lender they chose and what led to their decision. This way, you can narrow down your choices from the sea of mortgage lenders.
Considering you already asked around and now have at least two or three prospects, do your research. Check the lender’s reputation. Read the online reviews. Talk to their past clients if you have their names. You will deal with this mortgage lender in the years to come so thoroughly knowing them might save you from future headaches.
Don’t Hesitate to Ask Questions
Sometimes, it is best to schedule a personal visit to the lender’s office. Before having an appointment, jot down all the questions you need to ask. Don’t hesitate and ask away. Ask them to provide an upfront figure of all the fees, not just the interest rate, but also the appraisals and closing fees. Committing to a mortgage is a significant financial decision, so it is essential to find a mortgage lender that you will be able to trust and not screw you over.
Consult a Mortgage Broker
If you have asked around, did your research but the new information you are getting confuses you, it might be time to consult a professional mortgage broker. They will check your financial status and narrow down the option for you. It can save you time, money and the headaches of searching for the right mortgage lender.