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How to find a lender?
Now that you have a basic understanding of mortgages, and know approximately how
much you can afford, you're ready to find a lender. It's advantageous to find a
lender as early in the home buying process as possible — even before you start
shopping for your home. This way you'll already have done the groundwork and will
be ready to apply for a mortgage the instant you find a home you want to buy.
So how do you choose a lender? Well, while you should always consider the different
rates and fees offered by lenders, you should also research their history. Choose a
lender with a good reputation and someone you'd be comfortable working with. You'll
also want to make sure the lender offers the types of mortgages you're interested
in. And it's always a good idea to use Mortgage Bankers Association (MBA) members
because their high standards of conduct earned them a position in the MBA. Your
real estate professional should be able to provide you with a list of lenders
he or she recommends.
Ask the lender about the company's standards for turnaround
times on approving and closing your loan. This would be particularly important if
you need to close quickly. Many lenders now offer approvals within 24 hours for the
most credit worthy borrowers.
You might also want to ask about a firm loan approval
before you locate the property you wish to purchase. With a loan approval in hand,
you will have the negotiating clout of a cash buyer and the sellers will know you
are a serious buyer.
Once you've decided on a lender, you're ready to gather the specific
personal information needed to apply for your mortgage.
You should consult your tax advisor or attorney for more information on which
mortgage products may be appropriate for you.
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