Finding the Best Lender for You

Buying a home is still the American Dream for many people, but the process isn’t as simple as it used to be. That’s why choosing the right mortgage lender is essential when it comes time to buying a house.

With all of the mortgage lenders in business today, how are you supposed to know who to pick? It’s not always easy, but there are some tips that can help you choose the right mortgage lender when it’s time to find a home.

Use this guide to help you through the process without the stress and sleepless nights.

Ask for Referrals

Starting the process to finding a home and a mortgage lender is often the most confusing. That is why seeking referrals from friends and family can make the process easier.

When you ask for referrals, make sure you get the person’s experiences with the lender straight. You only want referrals from individuals who couldn’t be happier with their mortgage lender from the day they found them right up to today.

You want a reliable lender with a proven track record like DFW Texas Mortgage.

Speak With Multiple Mortgage Lenders

Mortgage lenders might all seem just about the same from the outside, but the truth is that they’re all a little different. When you’re first weighing your options, you need to speak with more than one company, even if you got a glowing referral.

Obtain the basic information from them and compare what they’re offering. Otherwise you won’t know a potentially great lender from a bad one.

Set up Interviews

Once you get some basic information from a few mortgage lenders, you need to actually speak with them. Take note if they engage with you. You want to be an important client for your mortgage lender, not just another dollar sign in a long line of them.

If possible, set up in-person interviews so you can actually meet with the individual helping you. The ability to communicate with your mortgage lender and build a fruitful relationship will help you when you find a home and you’re ready to buy.

Seek Pre-Approval

Not all lenders have a pre-approval process, or at least not one that truly takes your credit score and financial information into account. Some lenders even send pre-qualification letters based on very limited criteria, and this can lead to wasted time and considerable disappointment when you find a home and then are not approved for a mortgage.

What you’re looking for is a lender that will pull your credit and have an underwriter issue a pre-approval letter. Lenders that offer this type of pre-approval will also help you determine how much you can spend, making the process of finding a home a whole lot easier and more productive.

Understand Costs

In order to find a home mortgage lender that’s right for you, you’ll need to understand the costs you will incur. Each mortgage lender has a different cost structure, though some may be very close when compared.

The first consideration is the rates that you will be charged. You’ll want to know about a lender’s interest rates, and if they are the lowest being quoted. You’ll also want to find out whether you will be getting a fixed rate or an adjustable rate.

You should understand fees that you’ll need to pay to your mortgage lender. Common fees include closing costs, underwriting fees and broker fees. These fees can be substantial, so learn about them early on.

Contact RE/MAX DFW Associates for help buying a home – we’d love to help you!

Save