Today I’m discussing how to choose a mortgage lender. When choosing a lender, you have to consider three things.
1. Speed. How quickly can that lender perform? This is critical because in a competitive market if your lender needs 45 to 60 days and you’re trying to compete with other offers on the perfect home for you and your family, that extra time may be the reason you don’t get it, simply because someone else can close faster. Some of the best lenders can close a deal in eight days, though that’s not common.
2. Rate. Who has the best rate? That’s a bit tricky. Rates are not equal across the board, they have costs built into them. Those costs are going to be considered fees of some kind. They can be categorized in all different ways such as points, bucket fees, underwriting fees, and so on. Some rates may seem comparable, but the fees added to them can make them vastly different.
3. Creativity. Not anything illegal, but knowing how to perceive things differently. For example, if you own your own business and have a lot of tax write-offs, how things are looked at can be considered differently for income. Certain things can be put back in, such as depreciation of assets that are coming off of your tax returns.
If you’re considering buying a home, interest rates are currently extremely low—somewhere in the 3% range. This can’t last forever. If you’re interested, reach out to us and we can connect you with someone who can qualify you for a purchase. If you have further questions about finding a lender or real estate in general, please reach out to us. We would love to help you.