Buying a house is a lifetime investment. And while it is an exceptionally exciting time in ones life there are many lending options to consider. The normal course to home ownership involves taking out a mortgage (If only we could all pay in cash..). Depending on your credit standing, unfixed or fixed interest rates can go a long way. What's sure is all future homeowners who pass the requisites of borrowing a loan are given the same chance when choosing mortgage lenders, but it doesn't end there. Picking the best one for you is the first step, so here's a little inside scoop about the Business (from a Realtors perspective).
It Depends On Your Standing
Before you can begin to pick and choose between mortgage lenders, as a borrower, you must have a good credit rating and a source of income. If your salary doesn't seem sufficient, you're allowed to use other documentation to prove you meet the requirements for paying off the loan. To stay on the safe side, borrowers use co-signers, such as a spouse or a family member to help them. With a higher income and the help of a co-signer to ensure your debt will be paid, more options become available. Each firm is different when it comes to standards, so these sources alone may help give you the first boost.
Where to Start Shopping
It's not always best to go with a lender whose name you recognize from commercials. Although these institutions have solid reputations and give a feel of comfort and security, they may not necessarily be the right lender for you (Or may prove difficult to get a hold of when you really need them!). Overall, before you even begin to talk about any future deals, you want to specifically find a loan officer who has the right licenses and degrees. Another important factor to consider is, how easy is it for you to communicate with the lender and do your personalities click? It may sound silly, but you do not want to be stuck working with someone you cannot stand!
Ask A Close Friend
Start off by asking people in your circle who have already taken out successful loans; perhaps they can refer you to a good broker. Others to ask may be your financial adviser, your attorney, an accountant, or realtor; they are the best people to help give you a list of lender referrals because they deal with mortgage lenders regularly.
Do Your Research
The Internet is a vast resource to help find the the questions you may want answered. Research offering details, and understand everything you need to know about fees, lock-in periods, points, and qualification requirements. Remember to jot everything down and ask the lender you choose to explain the details.
In the end, if you know your stuff and and have all the right information, your path to investing in a new home should run smoothly. Consider your options carefully, and ask the right questions because it will be one of the biggest financial decisions of your life!