Top 5 Qualities to look for in a Mortgage Lender when buying a home
Searching for a mortgage lender? These Top 5 criteria could get you into your new home quicker, easier, & with a significant savings on your purchase and final monthly payments. Find the best lenders and mortgage professionals in your area by looking for these important qualities.
1. Find a mortgage specialist.
Although large banks and mortgage companies lend for real estate purchases, the distinctions between the two continue to grow in today’s environment. Since the recent economic fallout, banking in general continues to go through overwhelming levels of government regulation. These ongoing challenges have led to a specialized niche and opportunity for mortgage professionals to stay on their game. While larger banks continue to re-structure on all levels and service a multitude of needs, good mortgage professionals & lenders are becoming specialized in doing what they do best...working with borrowers, underwriters, appraisers, and closing deals!
2. Seek a lender or mortgage professional that is knowledgeable of ALL available loans and programs for the desired property.
Good lenders spend a considerable amount of time getting acquainted with the ongoing release of new loan programs and qualification criteria for borrowers. Obtaining the right loan program for your purchase can seriously affect the down payment, interest, monthly payments, as well as negotiations for purchase.
3. Seek a lender that will take the time to produce a pre-qualification letter vs. a pre-approval letter for the borrower before shopping.
A borrower that has been pre-qualified has already gone through much of the loan qualification process. The loan officer has already reviewed tax returns, verified income, & debt-to-income ratios. On the other hand, when a borrower has been pre-approved they have generally had a brief, verbal discussion with the lender based on stated incomes & current debt. Even though both letters are subject to final approval, an offer that is submitted with a pre-qualification letter shows the seller that the buyer is already preparing to purchase.
4. A seasoned loan officer can make all the difference in a successful purchase or sale.
Lending is generally a 10 step process that should take about 30 days or less to complete. During this time the loan officer is in the process of collecting and confirming data connected to the borrower and the collateral, (targeted property). Much communication occurs between the officer, real estate agents, underwriters, appraisers, and inspectors. Borrower qualifications are confirmed through financial records and credit worthiness and the home itself is also held to high standards of approval per loan program. Proper communication between all parties greatly depends upon the loan officer & his/her experience with the related parties. Communication from a seasoned professional is priceless on potentially difficult real estate transactions.
5. Do not neglect your personal comfort level with your mortgage professional.
You will be required to share the details of your work history, spending habits, credit worthiness, and specific income with your loan officer. Mortgage professionals are bound by laws of confidentiality concerning your personal information however it is critical to understand you will be going through very personal data with your officer. It is always best to be comfortable with the individual of your choice from the beginning of the process.
As lending becomes more regulated we expect to see more Mortgage Specialists in the lending field to work with borrowers targeting homes and real estate purchases. A variety of home loan programs continue to launch requiring a detailed knowledge of qualifications and limits on behalf of the lenders. Increasing regulation has resulted in many failed real estate transactions and left some qualified buyers disillusioned for home ownership. The majority of these situations could have been resolved by using a seasoned mortgage professional.
For more information on mortgage professionals & lenders please contact Michael at (208) 661-1869