Are you in the process of searching for a home? Are you ready to make your move, but unsure of how to proceed from a financial perspective?
At some point – sooner rather than later – you need to secure a pre-approval letter from a reputable mortgage lender. With this in hand, it’s easier to understand how much home you can afford, which will help guide your search.
Before you do anything, get it out of your mind that all mortgage lenders are “pretty much the same.” Even if you’re offered the same rate by two lenders, they’re not identical across the board.
Once you find a mortgage lender that suits your preliminary requirements, these are the types of questions you should ask:
1. What does the pre-approval process entail?
You should ask this question as soon as possible, as you want to have a pre-approval letter in hand as you begin your search.
Also, when you have this, it’s much easier to show a seller that you are serious and able to move forward with the purchase.
2. What interest rate do I qualify for?
Don’t overlook the importance of this question, as the answer will help you determine how much of a home you can afford. Even if you save half a percent by shopping around, it’ll keep thousands of dollars in your pocket over the course of your loan.
Interest rate isn’t the only thing to consider when comparing lenders and loans, but it should definitely be at the top of your list.
3. What comes next?
Once you have a pre-approval letter in hand, ask the lender to explain the next steps in the process. They should be able to provide direction on how to proceed once you find a home that you want to purchase.
The best lenders are more than willing to walk you through the process, as they want to make it as stress-free and enjoyable as possible.
Read Online Reviews
As you ask these questions and shop around for the perfect loan, read online reviews associated with every lender you’re considering.
Are people generally pleased with their experience? Does a large group of people have bad things to say about the lender? What are the primary complaints?
The more reviews you read, the more you’ll understand what a particular lender has to offer someone in your shoes.
When you ask a mortgage lender these questions – among others that are on your mind – you’ll begin to better understand which one is best for you and what you’re trying to accomplish.
There are hundreds upon hundreds of mortgage lenders willing to work with you to help you buy your dream home. Make sure you compare at least three to five to ensure yourself of making a good decision.
What process did you follow when searching for and comparing mortgage lenders? Were you happy with your final decision?