Selecting a mortgage lender for your home purchase is a big decision, and should be one of the first things you do when you are considering buying a house.Being pre-qualified gives you a general idea of how much you can afford to borrow. Being pre-approved means a lender has verified your information and credit rating and agreed to provide you with a specific amount of money. You are in a better position to go house hunting knowing exactly how much you can afford and that you have financing. And in Boise’s hot market, when you find your dream home you won’t miss out!
However, maybe more important is choosing the right lender. This isn’t the time to give your friend or family member business, just because of their relationship to you. Buying a house is likely the largest business deal you will ever make, and you need to treat it as such. And, keep in mind…mortgage people are salespeople. Mark Greene, contributing writer to Forbes.com says, “First and foremost, the primary goal of a mortgage originator/loan officer is to convince you to apply for your mortgage with them. Financial acumen is helpful but not required; the best salespeople are the biggest producers in the mortgage industry. Consumers looking for the most skilled financial mortgage expert often choose the best salesperson; expertise and wherewithal vary along a greatly disparate continuum.”
So, how do you know who to trust? Do it the old-fashioned way. Start by asking someone close in your universe who has recently gotten a mortgage, see if they can recommend their lender. Ask a financial adviser, an accountant, your attorney or your realtor to help you with a short list of lender referrals. These people deal with mortgage lenders regularly and can help you filter that continuum with the greatly disparate expertise and wherewithal and add real confidence to your decision.
Recently, here at Templeton Real Estate Group, we’ve seen some delays with clients deals due to the lender. Choosing the right lender is an important part of buying a house.
Here are some other tips offered by Zillow.com to help you find the right lender:
When it comes to choosing a mortgage lender, it pays to shop around and talk to at least three lenders to get a sense of the person, the interest rates, and the specifics of the loan they can provide you with. Your agent may have recommendations, but it’s best to do your own research, too.
Ask About Specific Experience
Are you a first-time homebuyer? Do you have less-than-stellar credit? Looking for a specific loan type, like VA, USDA or FHA? Every home purchase is unique, so ask potential lenders if they have experience with situations similar to yours.
Check out the Lender’s Reviews
Lender reviews can be an incredibly useful tool to help you choose a someone to work with because they can give you great insight into what it’s like to work with a particular lender. Zillow has the largest online lender directory with hundreds of thousands of lender reviews. You can search for your lender on our lender directory to read reviews.
Get a First Impression
You’ll be working closely with your lender, so take note of your initial impressions. Are they prompt to respond to your initial contact? Are they friendly and courteous? Do they honor their quote that you saw online or in an offline ad? Are they willing to explain things to you or educate you about different choices? Do they proactively discuss the timeline of the loan (estimated closing date, when to lock the rate)? Do they discuss when/how rates will change?
Compare Loan Estimates
Ask each potential lender for a Loan Estimate, a form required by law that can help you easily compare different loans from different lenders. Loan Estimates will show you all the details of your loan, including interest rate, fees, monthly payment, and more.
Again, do not underestimate the importance of choosing a knowledgeable mortgage lender. It could be the difference in thousands of dollars as well as you finding your perfect new home!
For more information on buying a house, check out these tips. And, contact Templeton Real Estate Group today—208.473.2203 or via our Website! As your East Boise Real Estate experts, we take special care of our clients; we listen to what you want, we walk you through each step and will find you your perfect match!
Have you been to East Boise lately? Come see the breathtaking scenery and wildlife found in the Boise Foothills, the Boise River and Greenbelt. Lucky Peak Reservoir, Barber Park and Marianne Williams Park. In addition, how about the great neighborhood eateries such as (our home) Bown Crossing’s Bier 30, The Tavern, Boise’s Fry Company and Locavore, as well as Harris Ranch’s Lucky 13 and a soon-to-come coffee shop! East Boise also offers great schools and a fabulous new Library. Homes in this area are diverse and range from the well-established in the Warm Springs Mesa area, River Run, and Wood Duck Island neighborhoods to the modern and traditional options found in Harris Ranch and River Heights.