Buying a home is part of the American dream. While it's an exciting time, it can be a little scary too. Since not many people have the ability to pay for a home in cash, buying a house involves a long-term financial commitment with a mortgage lender. Who you choose to finance your home is an important decision. You may decide to shop for a mortgage lender the same way you did to find a home; however, how do you know you’re making the right choice?
First, do your homework. With all of the mortgage lenders in business today, you may not feel at ease with your decision unless you do the right research. Below are some tips to help you choose the right mortgage lender when it’s time to find a home.
Ask friends and family who they used to finance their home. Inquire what they feel are the pros (and cons—if any) with the lender they chose. You want to locate a reliable lender with a proven track record like the team at Universal Mortgage and Finance.
It's always a good idea to speak with a few lenders. Initially, each organization might seem just about the same; however, not all mortgage lenders are created equally. Obtain the same basic information from each and then compare their offerings.
After your gather the same information from each lender, ask for a meeting. Schedule in-person interviews to meet the person who will be helping you. Notice if they engage with you. You want to be considered an important client to your mortgage lender. Opening the lines of communication with your mortgage lender now will help build a good working relationship when you're ready to buy a home.
Ask your mortgage lender to pre-approve you for a loan taking your credit score and financial information into account. Find a lender that will pull your credit and have an underwriter send a pre-approval letter. Lenders who offer this type of pre-approval can also help you determine how much your home budget should be; this will make the house hunting process a whole lot easier in the long run.
In your search for a mortgage lender, you need to understand the costs you will incur. Each mortgage lender will have varying costs. Determine what the rate will be that you will be charged. Find out the lender’s interest rates. Ask if it is a fixed or an adjustable rate. There will be fees 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.
If you would like more information about our Baltimore home financing services, feel free to contact us today. We are here to help!