Find the Best Mortgage Lender with These 6 Steps

Posted by on Dec 17, 2018 in Business, Business Laws | Comments Off on Find the Best Mortgage Lender with These 6 Steps

So you are planning on buying a home, and you are looking for mortgage lenders. Well, congratulations! However, you are asking yourself and looking for answers as to how to choose the right lender who will give you the best deal and customer service for probably your largest purchase in your entire lifetime?

Well, we have just the right answers for you! You have found the right page, and we are here to help you find the best mortgage lenders.

It’s easy to find online lenders, banks, mortgage brokers and other players who are more than eager to handle your loan application. So if you are on the lookout for the best mortgage lenders in Houston, here are six steps to follow.

How to Find the Best Mortgage Lender?

Strengthen Your Credit

Yes, you first have to do this. Before you go and apply for mortgages, check and fix your finances. You have to pull your credit reports and credit score. Don’t worry. You won’t have to pay for these. Both are free.

See if you have a low credit score and check your credit reports for any late payments, errors or delinquent accounts in high balances and collections. Be sure to make on-time payments and pau down credit cards with balances below 30 percent of your available credit line. This way, you increase and improve your score.

Aside from that, you need to show lenders that you can handle and existing debt including a new mortgage payment.  Expect that they will look at your debt-to-income ratio. Most lenders will ask for below 43 percent.

Narrow Your Budget

If you want to find the best mortgage lender, you need to know how much money you can afford. Despite qualifying for a specific loan amount, it’s best that you look for the monthly payment that you can afford.

Know Your Options

Do a bit of research, so you know what the mortgage facts are. This way, you can speak the mortgage lender’s language. Doing your homework beforehand will help you achieve success. You also need to know all the kinds and types of mortgage lenders out there. There’s the mortgage lenders, mortgage brokers, retail lenders, correspondent lenders, wholesale lenders, portfolio lenders, and hard-money lenders.

Compare

Before choosing the right mortgage lender for you, you have to compare several lenders first. Don’t just settle on the first lender. This way, you ensure that you are getting the best lender with the best deals on fees, rates, and terms,

Read the Fine Print

Make sure to read mortgage documents carefully to avoid any surprises or errors. Pay very close attention to the monthly payments, interest rate, lender, closing costs, loan processing fees, as well as the down payment amount. Always ask if you don’t understand some of the stuff written.

Also Read: 4 Examples of Why You Should Always Read the Fine Print

Get Pre-approved

Apply for a mortgage preapproval. Do this with several different lenders, or you can ask a mortgage broker to do it for you. This way, you can compare various loan offers. Be aware that each lender has different documentation requirements.