There are so many great financing options available to home buyers today. The best way to figure out which loan will fit you best is to spend some time talking to a qualified lender. A knowledgeable professional will be able to not only give you information on the best rates and terms available, but he or she can also explain what options you have given your unique financial situation.
Because of the considerable number of choices available to consumers, I advise you to learn as much as you possibly can about the different lending options that may be available to you. There are no stupid quesitons in the home buying process. Never hesitate to ask for the details of a loan that is being offered to you. The more comfortable you are with your lender and your loan, the better off you’ll be once you’re under contract.
Before starting the search, we need to know what you can afford to buy and what the bank will loan you. The first step is always speaking with a lender and getting pre-approved.
What should I look for in a great lender?
Considering that most buyers do not have cash to purchase a home outright, you’re probably going to need financing. The most common places to get a loan are credit unions, banks, and local lenders. In my experience, working with a local lender is often a more seamless process than working with a bank or credit union due to the fact that they are typically more accessible and available when a need arises.
Availability and Communication: Oftentimes, we will need to be in communication with your lender on weekends and odd hours of the day. If your lender is only available Monday through Friday between the hours of 9am and 5pm, we may run into issues. What happens when you find the home of your dreams on a Saturday morning at 11am and we can’t get an updated pre-approval letter until Monday at 9:15am when they get to their emails. You could end up missing out on a wonderful opportunity if the seller receives another offer. Finding a lender that is easy to reach and willing to communicate, day or night, is key.
Transparency: Your lender should be upfront and honest about costs that you will incur when obtaining a loan.
Reputable: It may sound silly, but using a good lender can help win you the deal in a multiple offer situation. If a listing agent sees that you’re working with a lender that is well known or that they have had a good experience with, they may advocate for you. A good agent will speak to their clients about every aspect of an offer. If your pre-approval is through IWantAHouse.net and another similar offer is through a respected local lender, which one do you think the agent would advise their client to accept?
I work closely with some amazing lenders that can help prepare you and take the time to answer any questions. Asking friends and family for their experiences is another great place to start! If you have someone in mind, I’d be happy to let you know if I have any experience working with them!
