Find the Right Mortgage Lender For You!February 27, 2017 / Buying
Finding the right mortgage lender for you can be a challenge. Even before surfing online for your next home, it is recommended by Zillow to start talking to potential lenders, to avoid the situation where you choose a mortgage lender out of convenience at the last hour. Additionally, pay attention to how your meeting, phone chat or online conversation goes with each potential mortgage lender. Do they take the time to answer your questions and understand your financial situation?
Here are 5 questions to ask any potential mortgage lender:
1. Is this the right time for me to buy? The lender should take the time to explain your situation, and include debt-to-income ratio, as well as how much you intend to put down.
2. What personal debts (such as credit cards) do I need to pay down before closing in order to get a good rate? Lenders should explain what they’re looking for in your credit history and how you can improve your credit. A score of 700 and above is considered good, and 800 and above is considered excellent according to Experian.
3. Should I pay points to lower my interest rate? Your interest rate may be paired with mortgage discount points. One point usually equates to one percent of the loan amount. The longer you intend to live in your home, the more it may make sense to pay points.
4. How much will I need to pay at closing, and how will I pay? It is advised to really understand how the money will be transferred during closing — check, wire transfer, bank check etc.
5. Who will service my loan? The servicer collects your mortgage payments and deals with any missed or late payments. A mortgage company may either act as the servicer or outsource this process. Learning this information allows the mortgage company to further explain their company and commitment to you.
To read the full article, click here! And contact us if you have any questions regarding how to finance your next home!