6 Things to Look for When Choosing the Right Mortgage Lender
Congratulations! You’re ready to start shopping for homes. You have been hard at work saving for a down payment, and you are finally ready to buy that perfect family home, townhouse, vacation home, or investment property. However, before you start searching for that special place in your favorite neighborhood, it’s important to find the right mortgage lender for you and your family.
How do you find the right mortgage lender?
Every lender provides different advantages, from interest rates to qualification requirements. While some factors of a home loan will be dependent on you, your credit score, your down payment, and income, there are also several other things to consider when shopping for the right loan.
Here are six of the top things to look for when choosing a mortgage lender.
Many real estate agents expect home buyers to be pre-approved for a loan before they start showing houses. This ensures the agent is using their time wisely and that you — the home buyer — understand your housing budget. Getting pre-approved is only part of the loan process, however, which is why it is important to understand different lenders and what they can offer you.
2. Low or competitive interest rates.
This is where shopping around for loans comes in handy. Compare interest rates with other lenders in the area, making sure you get the lowest rate possible for your situation. While interest rates are impacted by things like loan amount, loan term (how long it will take to repay the loan), and credit score, not every lender is equally flexible when it comes to rates.
It also helps to consider different lending institutions that can offer more competitive rates than most banks, such as a local credit union like Best Financial Credit Union.
3. Flexible repayment terms.
An important part of choosing a mortgage lender is understanding and feeling comfortable with the terms of repayment. Does it fit your budget? Does it stretch your wallet a bit too thin? Feeling confident that you can repay the mortgage is as important as qualifying for the loan. Ask potential lenders about their repayment options to see if they will accommodate your budget and financial goals.
4. Closing costs.
One area of home buying that is easy to overlook is the closing costs. When looking for mortgage lenders, ask about those pesky costs and how the lender can help lower or alleviate that aspect of home buying.
5. Financing options.
While shopping for that perfect mortgage, ask about the various financing options available to you. Mortgages aren’t one-size-fits-all. Every home buyer is facing different needs and circumstances. Your lender should seek to help you find the financing that fits your unique situation.
6. Local support and knowledge.
There is incredible value in finding a lender who offers expertise as well as community-based financing and support. A local lender who understands you, the community, and the local housing market can offer greater flexibility and personalized help in qualifying for and understanding your mortgage loan.
Shopping for a mortgage doesn’t have to be difficult or intimidating. Understanding what to consider when choosing a lender will help you make the most informed — and best — decision for your life circumstances and financial situation.
Ultimately, finding the right lender comes down to comfort, trust, and confidence. Approach each lender with questions about the above categories, and you are one step closer to finding the perfect mortgage loan for your first, or next, home purchase.
About Best Financial Credit Union
Unlike being just another bank customer, at Best Financial Credit Union, you're a member. We offer competitively low rates for home purchase or refinance on primary residences, second homes, vacation homes, and investment properties. We have a wide range of financing options available, budget-friendly and accommodating repayment terms, and a team of helpful loan advisors with working knowledge of the local real estate market in West Michigan. Find out if Best Financial Credit Union is the right mortgage lender for you and visit our website.