There isn’t any news that excites a prospective homeowner more than getting word that their mortgage has been approved. Although only about 10 percent of mortgage applications are denied, there’s a lot that a mortgage applicant has to meet before they get the home loan.
Let’s not get ahead of ourselves here, though. Before you can wait to learn about the fate of your mortgage application, you first need to pick a mortgage company that’s suitable for your needs. Dealing with a mortgage lender who isn’t right for you can cause costly problems.
So, how do you go about finding the best mortgage company?
Understand Your Needs
Mortgage companies aren’t created equal. Yes, they’re all in the business of making home loans, but they have different requirements for various types of home loans. Some lenders only offer specific types of mortgages.
Having a clear understanding of your needs is an important step in choosing the best mortgage company.
Establish how much you need to borrow and research various types of home loans to determine the most suitable mortgage for you. For example, if you’re looking to buy a house that costs $1 million, you need to know that you can’t get approved for a conventional mortgage because of the prevailing conforming loan limits. In this case, you need a jumbo loan, so you’ll zero in on finding lenders who make jumbo loans.
If you’re struggling with a bad credit score or you’re unable to save a decent down payment, perhaps you should look into government-guaranteed loans like FHA home loans, which are typically easier to qualify for.
Don’t Over-Focus on the Big Banks
Large banks are the go-to for most people who need a mortgage. They have vast amounts of cash reserves, hence why anyone would think they’re the best lender.
However, while we’re not discouraging you to shun the large banks, they aren’t necessarily the best lender. If anything, these banks deal with vast numbers of mortgage applications, so you might not get personalized customer service.
Look into credit unions, as well as the smaller, non-depository mortgage companies. In fact, it’s possible to get the best services from these companies. They have similar systems to those in big banks and even conduct a mortgage quality control review audit on a regular basis to ensure their products and services meet regulatory requirements.
Get the Help of a Mortgage Broker
There are over 5,500 financial institutions that offer mortgage services in the U.S. Whichever way you slice it, it’s difficult to review all these organizations and pick the best for you. Even if you narrow down to lenders in your state only, you’ll still be overwhelmed by the vast amount of information you would have to assess.
This is why getting the help of a mortgage broker is the best move you can make. These professionals have an in-depth understanding of the mortgage industry. They know the pros and cons of various lenders and can as such as their knowledge and experience to help you settle on a good lender.
Pick a Mortgage Company That Deserves You!
You’ve probably heard horror stories of mortgage companies that mistreat their clients. When you’re in the market for a home loan, you want to pick a mortgage company that deserves your money. Use this guide to find the best lender.
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