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Choosing the right lender
By Ethan Hunter
The real estate market has been hot for many years. The real
estate market stayed hot even though the economy has been
on a virtual roller coaster. This has resulted in a large number
of mortgage lenders entering the market with varying
mortgage programs for people with different economic
backgrounds and credit histories.
Home loans are now available for people with pristine credit,
good credit, average credit, below average credit and even
bad credit. There are loan packages available for people with
large down payments, small down payments and no down
payments at all.
For many first time homebuyers, choosing the right lender and
the right home loan package may seem like a daunting task.
There are so many competing lenders promising so
many different things. They see advertisements for amazing
interest rates and packages. Of course, those packages are
only available for a small percentage of homebuyers who fit
very specific criteria.
Many first time homebuyers fall into the trap of applying for
home loans through various lenders offering different loan
packages. While on one level this may seem like a good idea
since it, at least in theory, opens up the number of
possibilities for obtaining the right loan package for that
homebuyer, the simple truth of the matter is these group of
lenders may actually have less mortgage packages at their
disposal, even added together, than some lenders and
lending networks will have individually.
If you apply to a number of home loan lenders, each will
invariably run your credit report. An inquiry on a credit report
is noted and will affect your overall FICO score. Your FICO
score is a credit score that compares you to all other people in
the country with a credit history. This number can put you in
certain mortgage programs and take you out of others. The
last thing you want to do is engage in any activities which
could lower your FICO score at the time you want it to be the
highest possible.
With proper homework you can find a mortgage lender or
network of lenders that will have enough loan packages at
their disposal to have one that is right for you. The more they
have at their fingertips the more likely it is that they can
create a mortgage package that fits your unique
circumstances. Even if you think your home loan will be fairly
straightforward you may still benefit from a home loan lender
that has a number of varying packages. Perhaps they can
show you unique ways to have lower payments, avoid PMI,
reduce the down payment you were going to make without it
impacting your monthly payments and so forth.
Most first time homebuyers are typically unaware of the
nuances involved in home loans. They are typically unaware
of things like PMI, escrow payments, fixed rate loans versus
variable rate mortgages and their respective benefits and
drawbacks. A skilled mortgage lender will be able to explain
these differences and show you a number of different options,
including the option that may be right for you.
It is important to completely honest with your mortgage
lender, unfortunately, too many homebuyers try to pull the
wool over the eyes of the lender - this never works. In the
end everything comes out in the wash - the more honest you
are upfront the more options your mortgage lender will be
able to review for you.
Look for a lender that clearly states that they can assist
people with various types of home loan packages, including
differences in credit history, employment history and down
payment size. Again, the more tools they have in their
toolbox, the more likely it is that they can craft the right loan
for you.
Many websites now offer pre-screening services that can
match you up with the right lender without each lender
running your credit. Accurate and honest information is
important when using these websites otherwise you may be
paired with the wrong lender which will delay your getting the
loan you need and could also hinder your chance to get the
home you are hoping to get.
When speaking with your lender you should always feel
comfortable to ask questions. The lender may not always be
able to give you an instant response, but you should prefer
that they find out the answer before giving you a quick but
wrong answer. You should also feel that your lender is giving
you honest information. If you feel like he or she is lying to
you then that is not the right lender for you to be working
with.
It is a good practice to provide your lender with whatever
information they request. Never give them an original
document and always make sure you have additional copies
of anything they request. Calendar all cut-off dates they give
you and make sure you stay on top of it. You will want a
lender that is responsive to your inquiries and prompts you
when things are needed or cut-off dates are approaching.
Picking a lender is picking a partner. You want to find the
right partner for you that will be able to provide you with what
you need while you provide them with what they need.
Together, you and the lender will have you well on your road
to homeownership and a stronger financial portfolio.
About the Author
Ethan Hunter is the author of many credit related articles. If you are looking for help with Home Loans or any type of credit issue please visit us at http://www.homeloanave.com
Article Source: http://www.simplysearch4it.com/article/10358.html
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