Buying a house is an exciting adventure, but there is a lot more to the process than attending open houses and submitting an offer. Getting financing for a home is one of the most important steps, and it can be quite an ordeal. Mortgage lenders want to take a close look at your finances; there is a lot of paperwork to fill out, fees to pay, and more. So if you’re shopping around for a potential mortgage lender, it can feel overwhelming, but it doesn’t need to be!
At Real Mortgages, we want to do things differently! Our team of mortgage brokers and loan officers are here to ensure that you get the best possible mortgage and interest rate. We want you to be able to enjoy your new house, not stress over how to afford the monthly mortgage payments. Together, we can help you find the best loan option, get access to the best rates, and provide guidance and support throughout the loan application process. We are here to help you land your dream home, and to make sure that the process is smooth and efficient.
What to Consider When Looking For a Mortgage Lender
Understand Your Lending Options
Even though many people choose to get home financing through a bank, there are several options available.
- Credit Unions: Similar to a bank, a credit union is a member-owned financial institution.
- Banks and Mortgage Bankers: Traditional banks get their money from investors and their customers and provide checking and savings accounts as well as mortgage loans.
- Correspondent Lenders: A correspondent lender will make and sometimes service the loan; however, after the loan is financed, it is sold to an investor, typically Fannie Mae and Freddie Mac.
Do They Have the Products and Terms You Need?
Finding the right mortgage lender all starts with understanding your needs and finding a company that will meet those needs. Although the rules are changing, many lenders still require a 20% down payment in order to qualify for a mortgage loan. If you can’t afford 20%, some lenders offer a variety of options that will allow you to still obtain a mortgage, such as mortgage insurance. Mortgage insurance payments will increase your monthly payment, but it ultimately means that you’ll get the financing you need and the lender has additional protection in the event you default on your loan.
There are also several types of loans, such as 15- or 30-year fixed rates, adjustable rate mortgages, FHA loans, VA loans, FHA 203K loans, and others. Look for a mortgage lender that offers several options, and talk with someone who can walk you through the differences and advantages of each type to determine which suits your needs.
Do They Offer Competitive Interest Rates?
One of the most important factors to consider is which lender provides the best interest rates. A lower rate will obviously save you money over the life of the loan. Even though a fixed-rate mortgage, where the interest remains the same for the duration of the loan, is one of the most popular options, an adjustable rate mortgage may be worth considering if it will work for you. An adjustable rate mortgage is when there is a fixed rate for a certain amount of time, and after that the interest rate may change depending on changes in the financial index.
What Are Their Origination, Lender, and Other Fees?
Different mortgage lenders will charge different rates for their services, so it’s important to look at the costs for obtaining the loan itself. When going through the initial process of finding a lender, you can ask for a Loan Estimate, which will outline the costs associated with the entire loan process. Some fees that you may pay include:
- Origination Fee
- Appraisal Fee
- Credit Report Fee
- Application Fee
How Quickly Do They Move Through the Process
Working with a mortgage lender can be time-consuming. There’s the initial application process, the credit check, getting pre-approved, the home appraisal, and closing. Knowing how quickly the lender can get through these steps and close on the loan after a seller has accepted your offer can provide immense peace of mind. When you’re under contract, you’ll most likely be waiting for the home inspection to be completed, the appraisal, and other paperwork, which can slow down the process. But the faster that you can get the financing, the faster you can move into your new home! Some lenders have options that will speed up the process.
Choose Real Mortgages in Carlsbad as Your Mortgage Lender
If you’re planning on buying a house, get the process started with Real Mortgages. Our team has designed free online tools to help you get a mortgage that fits your needs. We’ll be there from start to finish helping you understand all of the complicated financial language, terms, fees, and with the application process in order for you to ultimately get the home of your dreams! Get in touch with Real Mortgages today to get started.