The outstanding mortgage debt across the U.S in mid-2018 was approximately 15 trillion dollars. Mortgage payments should be taken seriously because they’re long term obligations!
Finding a mortgage lender with desirable rates and terms can be a complicated process, but it’s easier than you think. Here are tips for finding the best mortgage lender that will help you get optimal mortgage conditions.
Your Credit Score Matters
The higher your credit score, the stronger your bargaining power.
Most mortgage lenders look at your credit score, so take time to improve it before you start shopping around for mortgage lenders. You can improve it by clearing recurring loans and lowering your debt. With a score of less than 580, it’ll be challenging to qualify for most mortgages.
Get accurate credit reports from reputable credit bureaus such as TransUnion, Experian, and Equifax. What happens if your credit rating is bad? Bonsai Finance got you covered.
What kind of Lender Best Suits Your Needs
Large lenders and small lenders have different things to offer, so choose wisely. Go for smaller lenders if you want one who will provide more personalized customer services. Larger lenders are the best option for someone who wants the right interest rate.
Do your due diligence to understand the differences between mortgage lenders.
Ask your Real Estate Agent to Give You Tips for Finding the Best Mortgage Lender
Good agents give professional recommendations because they understand the impact of various terms and conditions offered by different lenders. Let the mortgage lender know that your agent recommended their services. This simple connection is a good icebreaker and helps to reduce closing costs.
Compare Rates from Different Mortgage Lenders
Check online for the friendliest mortgage rates. However, the rate quote posted online is probably an estimate. Most mortgage lenders can only provide rates after checking your credit information and processing the loan application.
Ask for quotes from several lenders and compare costs before choosing the most suitable one. Low mortgage rates don’t mean that the lender is the best, so remember to use terms and conditions to make your decision.
Buyers with preapproved mortgage letters have a competitive advantage over others. Such letters serve as evidence that a particular lender has evaluated everything to find out how much you can borrow. It is advisable that you get preapproved by several lenders.
This preapproval saves time because the lender has the necessary information to process your mortgage loan. How do you get preapproved? This list shows what most lenders require:
Your Social Security number
W-2s, 1099s, and two years tax return
Outstanding debt obligations
Investment account information and checking How much down payment you can afford
Your source of income
If you follow these simple tips for finding the best mortgage lender, there’s no doubt that you’ll get the best stress-free deal from a lender who best suits your needs.
Contact us today if you want to learn more about credit scores, mortgages, insurance, and loans to make well-informed financial decisions.