When you are looking for a company to help you with your home finance, you want to make sure you find the one that is best for you. There are a few steps to take when you are shopping around for lenders. Give yourself some choices and then narrow them down to find the one you want.
Comparisons
Your home loan stretches out over the course of many years. If you just go with the first lender you find, you may be costing yourself thousands of dollars in the long run. Look at the interest rates that each lender is able to offer. Just by comparing rates, you can spend significantly less on interest over the life of your loan. Choose several companies that look promising, and delve further into what they offer to make your final decision.
Preapprovals
To get the best comparison, you need to seek a preapproval from every lender you are considering. When reviewing your application, Sun West Mortgage will likely need lots of information, including:
- Credit score
- Rental or mortgage history
- Income verification, through pay stubs and tax returns
- Savings information
- Existing debts
- Amount and source of down payment
Once you are preapproved, it’s important that you try not to do anything that might change your credit report. If, for example, you decide to take out a personal loan while still in process of seeking financing for your home, you can still be denied approval for your mortgage. Lenders can check your information again at any point in the process, so you want to make sure that you don’t give them a reason to change their minds.
Decision
The best mortgage company for you is the one that not only offers you the best rate but also is willing to work with you in ways that are convenient for you. Ask prospective lenders about their communication preferences. Do they communicate primarily via email, phone or in person? If you need someone who will text you instead of having to wait to talk on the phone, this can be a deciding factor.
In addition to the best rate, you also want to take into account the fees or other costs associated with the sale with each lender. Ask if fees such as closing costs, application fees or appraisal fees can be rolled into your mortgage. The out-of-pocket expenses that are due at closing may sway your decision.
Choosing the right lender can save you money and make the whole process go more smoothly. Take the time you need to choose the best mortgage company.
