If you’re thinking about buying a home, there’s a lot you’ll need to think about. You need to find the right realtor, do research on potential neighborhoods, and ensure that you’re able to find something in your price range.
However, there’s one thing you might not have thought of.
If you want to handle the home shopping in the best way possible, you should focus more of your attention on mortgage shopping.
Shopping for a mortgage is an important part of the home buying process, and it isn’t something that you should dive into unprepared.
Whether you’re a first-time home buyer or are just in the market for a new property, we’re here to help. Keep reading so you can learn our important tips for finding the right mortgage lender.
Why Mortgage Shopping is So Important
It’s best to start shopping for a mortgage before you start shopping for your home. Knowing what lender you’re going to use can make the home buying experience much less stressful.
When you know what lender you’re going to use ahead of time, you’ll know what you can and can’t afford. Too many people have made the mistake of falling in love with a home only to later realize that they can’t find a lender that’ll give them enough money.
Getting pre-approval for a mortgage can give you an advantage over other buyers. You’ll be ready to make an offer while they scramble to find a lender. That’s why we always recommend shopping around for mortgages before you shop for homes.
We have all of the info you’ll need to find the right mortgage. If you’re ready to start the home buying process, make sure you follow these 4 important tips to find a lender first.
1. Read Plenty of Reviews
Some people read through multiple reviews before they settle on eating at a new place or buy new clothes. If you spend a lot of time looking at reviews for restaurants or products, wouldn’t you want to put the same importance on finding reviews for mortgage lenders?
Reviews should play an important role when you’re looking for lenders. They can tell you everything you’ll need to know about what it’s actually like to work with a particular lender.
Don’t just read to see if people are happy with their new homes. Read between the lines to see what people have to say about the service they received.
Did they mention that the lender they worked with were very knowledgable? Did someone call out how friendly employees were? Did you notice any reviews where people felt like their concerns were ignored?
The answers to those questions are very important. Be sure to read reviews about lenders before you set your mind to working with someone.
2. Get Your Credit Score in Order
If you want to find the best mortgage lender, you’re going to have to set yourself up to be a stellar borrower. One of the best things you can do when you’re in your pre-buying phase is to focus on improving your credit score.
There’s a lot you can do today to start building up your credit. The first and easiest thing you can do is to make sure you pay your bills on time.
Late payments can add up and can eventually bring down your score. Even if you just make the minimum you no longer have to worry about missing payments completely.
If you’ve been unable to make payments because of financial troubles, it never hurts to speak with your debtors. They may be able to help you get on a repayment plan that makes keeping up with your bills a lot easier.
People that have a lot of credit card debt should work on paying off their balance, but they shouldn’t immediately close their accounts. Work on keeping the card a little active by charging small things like gas or groceries that you know you can pay off quickly.
3. Comb Through Your Credit Report
Since you’re working on improving your credit score, you’re in a great spot to go through your credit history. Request a credit report so you can know exactly where you stand with your debt.
Errors on credit reports are a lot more common than you’d think.
Someone with a similar name could have their charges on your report. You may have paid off very old debt, but someone may have forgotten to note that on your report. Going through your credit report can also alert you of any potential fraud on your account.
It’s important to note that it may take a while to straighten out any errors on your report. That’s why it’s best to start the process early on so you don’t have to delay buying your dream home because of an old report error.
4. Ask About Potential Speciality Mortgages
Are you or your spouse a veteran? Is this your first time buying a home? If so, find a lender that specializes in that.
Loans for first-time buyers and veterans can be great for buyers, but that’s only true if they work with a lender that’s familiar with them.
If you know that you qualify for a specialty loan, don’t be shy about finding a lender that knows the ins and outs of them. You’ll be able to find a loan that meets your unique needs, and working with someone who understands them can ensure that you reap all of its benefits.
Get Mortgage Guidance Today
Mortgage shopping is simple when you know what to look for. If you focus on improving your credit and doing research on your lenders, you’ll be able to find one you’re happy with in no time.
Do you have questions about finding a mortgage? Did you want more advice for first time home buyers?
Regardless of what you need, we’re here to help. Be sure to reach out today so we can have a conversation about the best way to fulfill your home buying needs.