It’s time to buy your first home. You made the decision that you want to become a homeowner, to get your piece of the American dream, but where to begin?
Before you search for the perfect home, the search for the perfect loan should be well under way. There are other factors you should consider besides the interest rate, points and loan fees when you are shopping for a loan, such as the lenders general reputation.
Your Realtor can provide you with the names of several mortgage lenders and can help you compare their programs. Some lenders may have great rates, but may have very conservative standards for qualifying customers. Others may be more willing to consider people who are marginally qualified or have less than perfect credit histories. Some lenders specialize in certain types of mortgages. Some have local underwriters and can process loans quickly while others may need extra time to process paperwork. The ordinary consumer deals with only a few mortgage lenders over a lifetime, but Realtors deal with many lenders every month. Their expertise can help you match your individual needs to the many offerings in this complicated marketplace.
One of the first concerns of a new home buyer is how to get a home mortgage loan with the most favorable interest rate. Most home buyers don’t give much consideration to the quality of the mortgage lender’s service and their record of performance. Consumer statistics show that 90 percent of today’s buyers look at the price of the home and the cons to the loan.
It is recommended that home buyers exercise care in the selection of both mortgage lender and type of mortgage loan. Buyers who focus on the lowest rates with little or no attention for the quality of service they will receive, could be setting themselves up for difficulty and disappointment. If the interest rate sounds too good to be true, there are probably hidden costs. Investigate the terms, fees and points associated with the loan.
The best mortgage lenders provide more than just low-cost, high-volume loan processing. The best lenders offer first-rate service which is clear communication, orderly processing, meticulous documentation and timely completion of deadlines.
You deserve the best service available. Ask your Realtor to recommend a quality mortgage lender.
There is so much to be said on this subject that I can’t cover it all in one article. Next week: Finding the right loan and Mortgage Broker vs. Loan Officer.
Ray Perry is the 2013 Realtor of the Year for Lake County and works for CPS Country Air Properties. He can be reached at 277-8000.
