Buying a new home creates an air of excitement, excitement for a new chapter in life, of a fresh start. However, there is another side to the process that is often not considered in the heat of the moment. This is referring to securing the money to purchase the house. Homes are costly. Different locations will bring differences in cost as will the size of the home, land attached, whether or not furniture is included, and any outbuildings on the property. Price may also be affected by the history of the place. This may consist of homicides or suicides that have taken place in or on the property as well as any police investigations or even reports of paranormal activity. Many states require the disclosure of any crimes that have taken place in the residence as well as any claims of paranormal activity. It may seem like a ridiculous thing to some, requiring paranormal activity to be reported; however, a report of anything paranormal will often hurt the sale of a property. Regardless, ensuring that you have to fund for the purchase is of the utmost importance. To do this, you will likely be seeking out a mortgage lender. There are so many different types of lenders that it can be difficult to determine which one to choose. That is why it is incredibly helpful to have as much information as possible about mortgage lenders and what to look for when selecting. All of this information as well as how to find mortgage lenders in your area can be seen here.
First, consider all of the different types of mortgage lenders. The first type is mortgage bankers. This is people that work for specific financial companies that handle all of the paperwork and sends loan packages to be considered by the bank underwriters. Next is credit unions which are member-owned financial institutions. These institutions generally offer incredibly favorable interest rates to all shareholders. The next type is a correspondent lender which are financial institutions that only handle mortgage loans. The thing about this type of lender is that while that are the ones to provide the credit, they then quickly sell the investment to a bigger company such as Chase or Wells Fargo. Next is mutual savings banks. These financial institutions are always locally focused and generally quite competitive. The next type of lender is savings and loans. This particular type is not common, but it was once the primary type of mortgage lender. They tend to be small and incredibly community oriented. Finally, there are the lenders that are entirely internet based.
Generally speaking, people prefer to use a local company, though sometimes it does not matter. Regardless, it is necessary to know your options in the parameters that you set. There are a few ways to find listings including local phone books, billboards, and the internet. If you are searching for lenders outside of the town, you live in or the city that you are moving to, your best bet is internet databases. To search via the internet, you will need to begin by opening your most used search engine. Next, you need to input specific keywords to get the results that you need. Search keywords vary a great deal from person to person, but there are a few things that should always be included. You must add the phrase “mortgage lender,” if you do not, you will not be able to get relevant results. Also, if you want to search within a specific area, you need to add the name of the town or city in which you want to search. If you are interested in a slightly wider search, try using the name of the county you are searching in or for an even broader search, the state name. An example of a narrow search is “mortgage lenders Pleasanton.” Of course, you do not need to omit words like “in,” but neither are they necessary. You can also use terms like “near me” or “local” if you prefer. If you do not get the exact result you want the first time you search, alter a word or two and try again. Keep working until you find exactly what you need.
Once you know how many options you have, you will need to start making some decisions. As you are looking at your options, you will need to be comparing various aspects such as rates and fees. Some companies will have most of this information listed on their website, but not all will. When the information you need is not listed on the site, do not hesitate to call or email the company and ask questions. One of the best things you can do when shopping for a mortgage lender is to ask questions. Do not worry whether your questions are “bothering” anyone, redundant or anything else. The only stupid question is the one that you do not ask. You need to understand precisely what the company’s policies are and what fees you will have to pay if you choose them. Remember, they want your business. With that being said, they will be happy to answer your questions.
Once you have chosen a lender to look at harder, there are a few things that you should keep in mind. First, there are several documents that you will need to take with you to the initial appointment. The includes the Social Security Numbers of all lenders, all account information (checking, savings, bank, and investment), information about any outstanding debts such as school loans, vehicle loans, etc., two years worth of tax returns, w-2s, 1099s, salary and employment information, employer contact information, and details about the down payment size that you are working with. Once you are presented with paperwork, be sure to read all of the fine print. This is where you will find details of fees, down payment requirements, and much more. Never sign a document without reading everything. Finally, check your credit score before heading to the financial institution. It is best to check your credit score when first beginning the process of looking for a lender. This way, if you feel that you need to improve your score, you will have time to work on that before making any appointments. The better your credit score is, the more bargaining power you will have with lenders.
