At some point in time, many couples and individuals decide that it’s time to buy a home. Consequently, the question that often arises is “How do I choose the right mortgage lender?” The following information can help you make the right choice:
Things You Should Know When Choosing a Mortgage Lender
- Learn how mortgages work – financial institutions such as banks or mortgage lenders provide mortgages to individuals who want to purchase or renovate a home. They are repaid on a monthly basis for 10 to 30 years, depending on the terms of the loan. The amount a person can borrow, the interest rate, and monthly payment amount are based on the specific type of loan, your credit score, and your Debt-to-Income ratio.
- Check out the different types of mortgages and interest rates – the type of loan you need (conventional, FHA, USDA, VA, etc.) and the interest rate you’re willing to pay are key factors to consider when searching for the right mortgage lender.
- Compare your different lending options – there are a number of financial institutions that provide mortgage loans. The most common are banks, credit unions, mortgage brokers, and non-bank mortgage lenders.
- What factors should I consider when comparing mortgage lenders? While there is a lot to compare when shopping for a mortgage lender, these 4 are the ones that will affect you directly:
- credit score requirements
- fees and insurance
- interest rates
- loan terms
- Questions to ask mortgage lenders – getting a mortgage loan can be a tricky, especially when you’re a first-time buyer. That’s why you should ask every lender that you research the following questions:
- How do I avoid getting foreclosed on if I run into financial difficulties?
- How long does the lending process take?
- How much are the closing costs?
- How much are the penalties for making late payments?
- Who takes care of the appraisal, home inspection, and the closing?
- Will you be my primary contact or someone else after I’ve been approved and gotten my loan?
- What to look for in a mortgage lender – one of the first things you should consider is the aspects of a lender that are the most important to you. Is it credit score flexibility, the online experience, or more personalized service? Additionally, introspect on what type of financial institution are you most comfortable working with?
Contact Our Mortgage Specialist Today!
Our experts are available to talk with you and help you reach a decision as the details on different mortgages can be confusing. For more information about home mortgages and the value of choosing the right lender, call Granite West Funding today at (559) 540-2275. Our experienced team is ready to answer your questions and assist you through the process.
