5 Tips for Choosing a Mortgage Lender

5 tips for choosing mortgage lender

Buying a home is an exciting life event, but there are many different decisions to make. One of the most important decisions you’ll need to make is picking a mortgage lender. The good news is that this article has compiled some helpful tips for you!

Step 1: Know Your Credit Score

The first step in choosing a mortgage lender is to know your credit score. A mortgage company can’t give you an accurate interest rate without this information. If you don’t know your credit score, you should contact the three major credit reporting agencies and request a free copy of it.

Step 2: Visit Websites for Mortgage Lenders

A mortgage is a loan taken on by a borrower to purchase a property. The size of the mortgage will depend on the type of property, the borrower’s income and the risk they pose as a debtor. A number of factors must be considered before a lender can determine what size of mortgage is appropriate for an applicant. These include credit scores, debt-to-income ratio, down payment percentage and more.

Step 3: Compare Interest Rates and Fees for Different Lenders

When comparing interest rates and fees, it’s important to also consider the length of the mortgage term. If a buyer doesn’t fully understand how a 30-year or a 15-year mortgage affects their monthly payment, they may choose the wrong loan. A 30-year mortgage is generally cheaper but it will take longer to pay off what you owe. With a 15-year mortgage, you’ll own your home faster but you’ll likely be paying higher monthly payments throughout the term.

5 tips for choosing mortgage lenderStep 4: Make your Decision and Prepare Your Paperwork

You will want to compare offers you received from multiple lenders. Once you’ve chosen the best offer, prepare all of your paperwork and get ready to sign off on it. Once you’ve reviewed your paperwork.

Step 5: Sign and Submit Your Paperwork

For most clients, the final step requires completing and submitting your paperwork by fax or email. Once your paperwork is received, you will receive a closing package with all of the documents you need to sign and return including the closing statement, loan documents, title insurance application, title policy, HUD-1 settlement statement, credit report authorization form (if you selected an FHA loan), and IRS tax form.

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