When purchasing a house, be it a house that’s currently on the market or a custom built, luxury home, you want to make sure that you have your finances in line long before you start the buying process. In each of these instances, finances need to be in line for the deal to be made, so it only makes sense that you take the time to find a mortgage lender prior to starting the process. 

Whether you’re a current homeowner or this is your first time buying a house, shopping for the right lender can be daunting. You never know what options are out there or if the deal that you’re getting is genuinely a good one, which can leave you feeling guarded, nervous, and overwhelmed with a process that is only just getting started.

If you’ve felt any of the feelings that we just listed, keep reading. In today’s blog post, we are going to go over a few of the things that you should know before you choose the mortgage lender for your next home. Let’s get started.

Know Your Credit Score

A significant piece in the lending process will be your credit score. If you’re not sure what your credit score is, you’re going to want to find out. Not only will a higher credit score show lenders that you’re responsible with money, it will give you a little bit more power in terms of bargaining with the interest rate and loan amount. With that being said, if you know that you’re going to be buying a house in the future, work on getting your credit score into shape. It will pay off in the long run! 

Now, knowing your credit score and having a good score are important, but it’s also good to make sure that you understand why your score is what it is. If you have a lower score but you understand why it is so, you may be able to negotiate with the lender. At the very least, knowledge of your credit score and why it is the way it is will give you some idea of what you need to work on if you want a larger loan or a lower interest rate.

Know the Variety of Lenders

Shopping around for the right lender is something that we strongly suggest, but it can be difficult to do if you’re not even fully aware of the options available to you. By learning about the different types of lenders that are out there, you can take advantage of the various loans available instead of feeling confined to one. Some of the most common home loan lenders that you can work with include: 

  • Mortgage Bankers
  • Credit Unions
  • Correspondent Lenders
  • Savings and Loans
  • Mutual Savings Banks

Take some time to see what the options in your area are and find the one that works best for you! Do not feel like you have to settle for one lender simply because they’ve approved you, because the reality is that the lender you choose will contribute to the experience that you have.

Ask Plenty of Questions

As we mentioned above, it’s important to shop around when finding the perfect lender for your mortgage. While it can be time consuming to go from one place to the next, it’s always good to have a list of questions that will better help you determine which lender is the right one. By asking thorough questions to the lenders you can quickly filter certain lenders out while also determining the factors that matter the most to you. Of course the interest rate that they’re offering is going to help determine if a lender is right for you, but it’s certainly not the only thing you’ll want to consider.

When meeting with a lender, take some time to ask them some of the following questions:

  • What lender fees will I be responsible for?
  • What are the down payment requirements? 
  • What is your preferred method of communication and how soon should we hear back from you?
  • How long does the processes of preapproval, appraisal, and closing usually take?

By having your questions ready you can walk in confident and prepared for whatever happens during the meeting.

Trust Carr Homes with Your Next House

Finding the right lender for your next home purchase can be overwhelming, but it’s worth every minute of time that you invest in the process. Once you find the right lender for your mortgage, you can count on the team at Carr Homes to help you find the house of your dreams. 

Whether you’re looking for a custom built, luxury home or you want to shop the gorgeous homes in Hamilton that are currently on the market, we can help! Browse the variety of homes for sale that we have listed on our website, and reach out to our team if you have any questions or would like additional information on a house that’s listed. We are always more than happy to help!