Buying a home is an essential part of the storied American dream, and a part that most people hope to do in their lifetimes. One of the things that keeps people from doing it is finding the financing they need — because buying a home is the single largest purchase many people make in their lifetimes. Mortgage companies can be intimidating, since they can either approve or deny you the financing you need for a home, but it’s important to remember that you have a choice in the matter. Here are a few tips for choosing the right mortgage company for you.
1. Understand your own situation.
The first thing you need to do on your search, before you even actually start looking into specific lenders is to make yourself very aware of what your situation is. You need to know what your assets are, the amount you would be able to comfortably pay for a mortgage payment, and what your credit score is and what your credit report looks like. Also look into what types of loans you may be eligible for, like VA loans (which are some of the last 0% down mortgages there are).
2. Ask people close to you.
When you’ve gone through your finances thoroughly and are ready to start looking for lenders, the first thing you should do is ask people close to you who their lenders are and if they would recommend the lender to you. When it comes down to it, lenders are salepeople, and asking friends and family for recommendations may give you a better idea of what a lender is going to be like.
3. Do careful research.
After you’ve asked for recommendations from your friends and family and have compiled a short list of potential companies, you need to do some careful research about each one. Mortgage loan rates have been going down, and are typically under 4% these days, but don’t feel like you need to rush to get good mortgage rates. Mortgage rate trends have been on the decline for months, and taking your time and finding the right company is more important than rushing for a certain rate.
Do you have any tips for choosing the right mortgage company and finding the best mortgage rates? Feel free to share them with us in the comments section below.