Choosing a lender is an important decision. If you’re gearing up to buy a home, one of the crucial decisions in the process is selecting a lender. From choosing a loan officer to deciding on the financial institution, this blog post will guide you through the process. I’m Jonas Albert, the broker owner of Streetlight Realty, and in this unscripted video, we’ll discuss the key considerations when picking a mortgage lender.
Understanding Mortgage Lenders
Let’s start by defining what a mortgage lender is. It could refer to the bank or the person assisting you, such as a loan originator or mortgage loan officer. Today, we won’t delve into titles but focus on helping you figure out the right questions to ask and what to look for.
Firstly, not all lenders are the same. While baseline rules exist, institutions can have additional regulations and offer various programs. So, how do you determine where to go and who to talk to? Let’s break it down.
Assessing Your Financial Needs
When meeting a client, one of the initial discussions revolves around their financial needs. This involves understanding priorities such as getting the best rate, lowest payment, minimizing costs, or seeking assistance with down payments. Asking these questions helps in making a solid recommendation on the type of lender that might be a good fit.
Three Key Questions
- Down Payment or Cash to Close: Are you planning on putting a substantial amount down, or are you looking for assistance with down payments and closing costs? Not all lenders provide these options, so it’s crucial to find one that aligns with your needs.
- Credit Score: Knowing if you have excellent, good, or okay credit is essential. Different lenders cater to various credit score ranges, affecting rates and eligibility for down payment assistance programs.
- Selling a Home: Do you plan on selling a home to fund your next purchase, or do you currently own a home that you want to sell? This question helps explore whether you need to sell before buying and if special lending products are available for your situation.
Finding the Right Lender
Once you understand the type of lender you need, the next challenge is finding them. While your real estate agent can offer valuable insights, it’s essential to ask for multiple referrals. Some agents may have partnerships with specific lenders, so clarify if the recommendation is unbiased.
Don’t hesitate to do your research online, call different institutions, and ask about their products. If you’re working with a top-producing real estate agent, they’ll likely guide you through the process and provide trustworthy recommendations.
Conclusion
In summary, these three questions can quickly narrow down the type of lender you should be working with. Remember, you have the freedom to choose any lender that meets your needs. If you have further mortgage-related questions, feel free to reach out. Stay informed by subscribing for updates, and let’s make your home buying journey a smooth one.
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SLR Experts
Streetlight Realty is located in Washington Twp, OH, and serves the entire Miami Valley. Whether you are looking to buy or sell real estate, we have experts who can assist you in the process. You can call Jonas Helbert at 937-626-4181 or Katie Masters at 937-901-8177 with any Real Estate questions. We are here to help!
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