5 Top Things To Look For When Choosing A Mortgage Lender
Last Updated on January 21, 2022 by Kravelv
The prospect of buying a new house is exciting, scary, and stressful all at once. There are many things to consider, not least which mortgage lender to go with. The mortgage that you can borrow is an essential factor in choosing which house to buy and can be the difference between the perfect home or settling. With careful consideration of all your options, you should get the best mortgage for your needs.
Do you fit their criteria?
One of the essential things to consider is if you fit a lender’s criteria. For most people, this likely won’t be a problem, but where there have been previous credit issues, you may need a specialist lender. When approaching lenders, be upfront about any potential issues so that they can give you a straight answer. You may find the type of property you’re buying has an impact as well, as investment properties may require a mortgage type a lender doesn’t offer.
Apart from the interest charged on the actual mortgage loan, there are usually other fees that your mortgage lender will charge you. These fees include appraisal fees, underwriting fees, and more. The best mortgage lenders will be transparent about which fees they charge for a mortgage. Should a lender be coy about them, you may run into financial trouble down the line.
What rates are offered
Compare the rates offered by a few lenders to see who offers the most beneficial loan for your situation. Mortgage calculators are helpful as a starting point, although they don’t always give every option. Once you have an idea of who is offering what, approach your most likely candidates so that they can run your numbers, including proposed down payment, and give you real-time offers. In this way, you’ll find the lender who can offer you the best rates.
Do Existing Customers Get Special Offers
If you’re looking to borrow your mortgage from a financial institution like a bank, check if they offer existing customers any special offers. If your current bank doesn’t offer anything, but another local bank does, find out how long you need to have been a customer. If you aren’t looking to buy in the short term, consider switching to take advantage of the reduced rates.
As with other areas of life, you’ll find asking people you know for recommendations is an excellent way to start your search for a mortgage lender. They’ll be able to tell you why they went with a particular lender, any problems your friend ran into, and how satisfied they are. If any red flags are raised, you can investigate further and rule out any lenders accordingly. Even positive feedback may rule a company out if your lending needs are different from the recommenders.
By following these simple tips, you will have a mortgage offer in your pocket and be well on your way to buying that dream property before you know it. Happy house hunting.