This is a great question, because it addresses a common misconception about the mortgage industry as a whole. You might assume that all mortgage lenders are essentially offering versions of the same thing, and they’re all similarly motivated to get you the best deal. That’s somewhat true, with caveats, but it largely discounts individual experience — an important consideration.
The Best Lender for You
Every lender will offer a mix of loans, and features and terms will vary. The best lender for you will vary depending on what you’re trying to do, which is why we recommend shopping before you dive in. Read our last post if you’re worried that shopping for lenders will ding your credit score.
Restrictions relating to the debt-to-income ratio and credit score are often in place with many lenders, and it’s important to understand your financial standing upfront so that you can find a lender with whom you can successfully partner.
It’s so often the case the prospective homeowners find their dream home first and then scramble to get their financing in place. Rushing the process can be problematic, particularly if you’re taken in by offers that sound just too good to be true — and then turn out to be just that. If your particular loan has a number of issues or your finances just don’t meet the requirements of a given lender, this is information you want to have from the beginning so that you don’t jeopardize your chances of closing on that dream home.
A Little Education Goes a Long Way
Ultimately, it’s up to the prospect homeowner to be smart and informed. That means researching your options, asking questions, and choosing a reputable, experienced lender with a long track record of success. As you consider your options, here’s what to keep in mind:
- Fees: Are the lender’s fees rolled into the loan, or will you paying them upfront as closing costs?
- Interest rates: Rates are predicted on your credit score, credit history, and debt-to-income ratio, but they will vary somewhat from one lender to another.
- Ease of communication: How easy is it to communicate with your lender now, and what are payment options like in the future? Is there a simple web portal or app?
- Down payment requirements: What’s required for the loan you’re seeking? Is there any flexibility?
Finally, listen to your gut. Your lender should have a long record of success, and you should feel comfortable trusting the actual person working with you on your loan. If, for whatever reason, you don’t, keep looking.
Remember, You Have Options
A home loan is a big deal. The more you know, the more empowered you can be to make the best decisions. And the Cushing Team at Guild Mortgage here in Reno can help. We’d love to answer your questions, offer our insight, and help you on the path to homeownership. Contact us today.