Blog posted On September 28, 2022
When shopping around for a mortgage lender, it's important to investigate more than who has the lowest rates. While most mortgage lenders have a lot of the same processes, other factors that can set them apart include the service you receive and the fees they charge.
Keep these five things in mind when choosing your lender.
Ask about fees – The fees that you pay on your home loan will vary across many lenders. Some lenders can be unclear about what fees you’ll pay and why. Others will list out each fee individually. Ask about the fees upfront to get a better idea of what you are paying for and see which fees you can negotiate.
Interest rate – One of the easiest ways to compare lenders is the interest rate they can offer you, but it shouldn’t be your only determining factor. Rates fluctuate daily, so you want to ensure that you are comfortable with the lender before you lock in your rate. Ask about options they may have to buy down your interest rate to lower your monthly mortgage payment.
Down payment assistance – Are you a first-time home buyer? Ask the lender what programs they offer for first-time home buyers and if they have any down payment assistance that could help you not deplete all your savings.
Determine the kind of mortgage you want – Do some research ahead of time to determine what type of mortgage you are looking for and narrow down your search to lenders who offer the program.
Ask for referrals – Getting a mortgage loan and choosing the right lender to help you through the process is a big decision. Ask around for referrals from people who have had a good experience. Having the right lender can make the home buying process a stress-free experience.
Are you starting your home buying journey? We would love to talk more about why we are different and how we can offer MORE paths to homeownership.