WHAT HOMEBUYER’S NEED TO KNOW ABOUT CHOOSING A LENDER

There are some people who, when looking for a home to purchase, only consider the price of the home in their decision making process. In truth, there are many other factors that are going to have an effect on the actual price that you pay. The largest factor, beyond the asking price of the home, is which lender you are using to finance your home loan.

The most important thing for you to do is to get a great interest rate. However, you also need to find a lender that is going to act fast and lock you into this low rate as quickly as possible. The interest rates change very quickly and, if your loan officer does not lock the rate it, it could easily cost you thousands of dollars.

Before you even think to apply for a loan, you need to do some research on your own to determine what the current interest rates are so that you can make a better decision in choosing a lender. Also, do not be afraid to ask for a better rate especially if your current credit score is considered good.

You also have to consider the various fees that will be applied to your loan. One lender may have higher fees than another and, while it may not make the monthly payment go up too much, in the long run the fees can add up and you could spend way more than you expected to.

Along with the interest rate and response time of the loan officer in locking in the rate, you also need to find a lender that can close on the loan quickly. Many sellers do not want to wait a long time for the close of the sale. They need to sell quickly, and it is up to you to make that happen by choosing the right lender.

The best way to find the home you want is to get preapproved for the loan before you even start looking at houses. The lender is going to let you know how much money you can borrow, which will help you narrow down your search. You do need to understand, though, that just because they tell you that you can borrow a certain amount does not mean you have to borrow that much. Only borrow what you really think you can afford.

The best way to start your search for lenders is with your real estate agent, if you have already been working with one. They will have access to a wide variety of different lenders and can get you pointed in the right direction. You may also wish to ask the people you know which lender they have gone through and ask for feedback about them.

Choosing your lender should be a task that is taken as seriously as choosing your new home. The fact is that each lender will have its own advantages and disadvantages, and you will have to make the decision based on what is going to affect the actual cost of your home.

Other Related Articles

10 Steps to Buying a Home

10 Steps to Buying a Home

Buying a home can be an overwhelming experience. At Avenue Realty, we make sure we guide you along the way. With this 10 Step Guide, we take you through all of the major steps to buying a home.

10 Steps to Buying a Home - ebook

How can you tell if a home is overpriced?

How can you tell if a home is overpriced?

Buying a home involves a large financial commitment; in fact, for the vast majority of the population, it’s the largest purchase they will ever make. Because of this, you want to make sure you are paying a fair price.

Understanding Title Insurance

Understanding Title Insurance

Buying a house? Title insurance is an important, often overlooked, part of the home-buying process. It is true that title insurance can be costly. However, this is a situation where an ounce of prevention is truly worth a pound (or more) of cure. A title insurance policy can cost a few hundred dollars, but, if there turns out to be a problem, correcting it on your own could cost tens of thousands of dollars. Unlike other types of insurance policy, this is a one-time fee, rather than a monthly or annual expense.

Selecting a Buyer’s Agent

Selecting a Buyer’s Agent

You want the perfect home that will suit your desire for the ideal location, quality, and most importantly budget. For most people, buying a home is the most expensive purchase they will make. You will want the home you select to have minimum problems. Making sure you get a home inspection before the closing can help ensure the quality of the home. Everyone desires a location that meets certain needs such as being in a good school district, near family or close to work. Price is the top consideration. Purchase a home that will allow you to have cash left over for other commitments and entertainment.