Aside from choosing the Johns Creek home you want to make an offer on, deciding what type of financing to secure and from what lender is arguably one of the biggest decisions you’ll make as a homebuyer. This week we have included three tips to help you choose the right mortgage lender for you.
The best place to start is to ask your family, friends and your real estate agent what lenders they recommend. Getting referrals from your friends who have recently purchased a home can help you navigate the sea of prospects to find someone you trust. Your real estate agent works with mortgage lenders daily, has your best interest at heart and can recommend lenders he or she trusts to successfully close the transaction and complete the approval process.
Interview and Research Lenders
Once you have a few referrals from friends and your agent, take time to meet and interview these lenders. Important things you want to discuss include how quickly the lender can get you pre-approved, how your credit score and any potential improvements needed affect your ability to get a loan, whether or not the lender offers in-house underwriting and having the lender walk you through the best loan options for your personal situation. Do you prefer a smaller lender or a larger lender? These are all things to think about when interviewing lenders.
Get Pre-Approved and Understand What Fees are Charged
Once you’ve interviewed lenders, choose at least two you want to get pre-approved with. During this process, you’ll want to ask for a full understanding of what fees are charged and ensure you’re getting the lowest rate and best loan terms. Many homebuyers don’t realize how many fees are added into each transaction based on the lender you choose as a homebuyer. According to Realtor.com, some of the most common mortgage fees to be on the lookout for are:
- Settlement or closing costs
- Title insurance
- Attorney fees
- Interest rates
- Partial month interest
- Credit check costs
- Hazard and property insurance rates
You’ll want to get a breakdown from the lenders you’re pre-approved with of what the fees that are associated with your specific mortgage loan include and ensure the lender takes the time to walk you through each fee.
As a homebuyer, following these three steps will equip you with the confidence to choose the best lender for your needs and make the home buying process much less overwhelming.