Getting your financing lined up when starting the home buying process is one of the first things that should be done by any homebuyer. You can speak with a loan officer over the phone who can guide you through the process and even prequalify you over the telephone regarding how much you might be able to qualify for.
Furthermore, you can submit a loan application to that loan officer along with supporting documentation and receive your preapproval oftentimes on the same day. A preapproval means you’ve applied for a home loan and all that’s needed is for you to bring a signed sales contract for a property you wish to buy.
One of the things that not only can confuse borrowers but frustrate them is shopping for a mortgage lender by making phone calls and getting various interest rate quotes.
When shopping for interest rates buyers will soon notice that interest rate quotes are very similar from one lender to the next. Interest rates often change daily and if one lender raises rates one day, it’s very likely every other lender will too. However, interest rates aren’t the only reason to select a mortgage company. There are also other considerations. What else should you look for when searching for a mortgage?
Accessibility. You want to be able to speak with your loan officer without having to leave multiple voicemails or email requests. When shopping around for a mortgage, did you have to leave a message or was someone there who could immediately answer your questions? Having a local presence also helps accessibility instead of contacting a customer service representative who might be three time zones away.
Reputation. What about the reputation of a lender? You can ask a lender directly if they have a good reputation but what you really want are referrals from borrowers in your area. If you’re looking for a good mortgage company with a solid reputation ask your coworkers and friends for recommendations. You may get good responses or bad responses but you need third-party verification regarding reputation. Sometimes a lender who quotes extremely low rates does so because that’s the only way to get any business.
Choices. You want a lender that offers the full suite of available loan products and not just conventional mortgages. You want someone who can offer government-backed loan programs such as VA, FHA, and USDA as well as conforming loan programs underwritten to Fannie Mae and Freddie Mac guidelines. A great Jumbo loan selection is also a plus for higher net worth buyers.
Remember that mortgage companies close loans each and every day while you may do this only a few times in your lifetime. That means it’s important to make the best choice possible. Remember every real estate transaction has many moving parts.
You want a competitive interest rate but you also want a respectable lender that has a solid reputation in the industry, offers a variety of loan programs and who returns your phone calls promptly. Don’t just go with the lowest rate, go with the best lender. Contact Coast2Coast with questions 7 days a week by calling the number above, or just submit the Quick Request Form on this page.