Al Pesqueira
HomeSmart Advantage Group
SA531252000
(520) 275-7801

Tips for Researching Mortgage Lenders and Rates

You’re ready: You’ve saved up enough for a downpayment, your credit score is excellent, your bank statements, pay stubs, and other paperwork are all in order—the last ingredient to home ownership is getting the mortgage. If you’re new to home ownership or it’s been awhile since your last purchase, here are mortgage-lending and rate tips to help you.

Shop Around
If you’re a first-time home owner, know that you don’t have to go with your first choice. If you already own a home, you don’t have to go with your current lender, either. Like many industries, you can shop around for different mortgage lenders and find the best deals. For young, first-time home buyers, you may want to consider mortgages that allow you to dip into your 401k without penalty. For adventurous home buyers who are investing in a fixer-upper, you may want to consider a 203k loan. As you can guess, there are multiple options to choose from that are specific to your needs, but not all mortgage lenders offer all of them.

In addition, consider a mortgage broker instead of lender. Lenders tend to have relationships with specific banks, which can sometimes limit your options. In contrast, a mortgage broker has relationships with multiple banks and their job is to find a deal that works best for you.

Timing Is Everything
Rates fluctuate. Some fluctuations are based on factors you can control, such as the type of mortgage you choose, your credit score, and the size of your downpayment. There are also outside factors such as changing homeowner tax deductions and market fluctuations. These factors may make it wiser to wait or speed up your home-buying process to lock in the best rates.

In addition, consider how long you will live in your new home. If you have a transient lifestyle, options such as adjustable-rate mortgages with short-term low interest rates or similar options can keep your interest rate low just long enough until you need to move again.

Ask An Agent
You may have already asked friends, family members, and coworkers about their mortgage-lending experiences, but don’t forget to ask a local real estate agent about their connections as well. An agent has the benefit of local connections and prior experiences when it comes to mortgage lenders, brokers, and rates in the neighborhoods you’re looking for. Recommendations from a real estate agent come with a stronger professional and quality guarantee, and can also come with the added benefit of potentially reducing closing costs.

Not all mortgage lenders and rates are created equal and it’s important to investigate your options before putting your signature on paper. Heed the above tips as you enter the mortgage-consideration process. If you need a local expert to guide your first steps, contact me today!