What does a good lender look like?
If you've never bought a home before it can be overwhelming. One of the most important part of homebuying is finding a great mortgage lender. But what does a good lender look like? Here are some tips when finding a lender!
Green Flags to look for
A great lender will always keep in touch with you and communicate effectively. They must have extensive knowledge of the industry and be able to give you up to date information on the market. If you don't understand something in a disclosure you should ask your lender, and they should be able to explain it to you.
Works with you
You should be able to be open with your lender on what budget you are comfortable with and a good lender will be able to give you information and find the right loan program for you without pushing your boundaries.
Always ask around when you are looking for a lender. Your ideal candidate should have a proven successful track record. Do your due diligence and see what kind of experiences have they provided to their clients.
Honest and Direct
A good lender should be able to tell you their rates, loan terms, down payment requirements, mortgage insurance, closing cost and fees. They wouldn't need to keep things vague and ambiguous or hit you with hidden fees later on.
Things you can do before applying for a loan
A good lender is important but there are things you can do to ensure success when applying for a loan.
Take a close look at your credit score and if it is not where you want it to be, then look for ways to improve it. If your score is not at the ideal spot when you are looking to buy a home then you need to keep in mind the rates and requirements for applying will be harsher on you.
Do your research!
It is always a good idea to get multiple estimates from different lenders. Shop around and compare these rates to each other. You can do a preliminary online search prior to meeting with lenders as well.
Know what you need
There are many different types of mortgages. Before you are able to look for the right lender you need to figure out what type of mortgage you want and it will be a good starting point for you to try and find the right lender to be able to help you get that loan.