Many aspiring homebuyers are initially delighted to discover the many different home loan products and programs available, but they soon find themselves facing a conundrum: Which loan is the right choice? Having a lot of options should be a good thing, but it’s often overwhelming. When you have too many choices, it’s hard to feel confident that you’re making the best move. If you’re worried about how to find the best mortgage for your needs, don’t panic. If you complete a few simple steps, then you’ll be able to proceed along the path to homeownership without any doubts about your financing.
How to Find the Best Mortgage for Your Needs
According to Statista, purchase loan mortgage originations totaled some $228 billion in just the first quarter of 2019. In that same time period, refinance loan mortgage originations reached $97 billion. Clearly, many Americans are turning to lenders to finance their dreams of homeownership. When you’re ready to make your move, use the tips below if you’re wondering how to find the best mortgage for your needs.
1. Start Early.
The Motley Fool urges its readers to start their hunt for their best mortgage before they begin shopping for a house. Why should your first stop be a lender instead of a real estate agent? Knowing that you can qualify for a home loan and how much you can afford to borrow allows you to focus your search. Instead of wasting time and energy looking at homes that are out of your price range, you can zero in on affordable properties. Getting your financial ducks in a row first can also make any offer that you make more appealing. Many sellers are reluctant to accept offers from buyers who haven’t yet been preapproved by a lender.
2. Identify Trusted Lenders.
The right lender can be an invaluable ally when you’re interested in buying a home. While the average person doesn’t buy homes often enough to grow comfortable with the process, lenders deal with mortgages routinely. They know all the ins and outs. They can offer expert advice in a user-friendly manner, educate you about your various loan options and their respective pros and cons, and provide insights that smooth your path toward becoming a homeowner.
How do you find the right lender? Start by asking family, friends, and coworkers about their experiences. You can also research potential options online. The Better Business Bureau is always a good resource when you’re searching for a reputable firm, and online review websites may prove helpful. When you have a short list of possibilities, schedule a meeting with potential lenders to get a feel for how they work, what they can offer, and how comfortable you’ll feel working with them.
3. Evaluate Your Situation.
Why are there so many mortgage options to consider? In part, it’s because the people seeking them have different needs, resources, and goals.
As Credit Karma points out, an honest evaluation of your situation is vital. After all, it’s tough to find the best mortgage for your needs when you don’t know what your needs are. Think about your financial circumstances. How much can you afford to spend? Assess your credit history. A stronger credit history, a higher credit score, and more resources for a down payment can all help you get a better deal. A lack in one or more of these areas may point you toward a specific loan program that’s designed to help people in your situation.
In addition, consider your future plans. Are you likely to move in the next few years or are you eager to put down deep roots? The length of time that you plan to stay in a home should also factor into your decision.
4. Learn About Loan Options.
Should you choose a fixed-rate mortgage or an adjustable-rate mortgage? Would a conventional loan be a smart pick? What about a government-insured loan? What role do interest rates, down payments, points, closing costs, and debt-to-income ratios play in the possibilities before you? As the Home Buying Institute indicates, there’s a lot to think about when choosing a home loan, so having a basic grasp of the terms and loan products that you’re likely to encounter is important. Do your homework, and always ask questions when you don’t understand something.
Whether you’re a first-time homebuyer with questions about how to find the best mortgage for your needs or a homeowner interested in refinancing, PrimeLending of Wichita, Kansas, can help. We make home loans simple with expert guidance, an expansive selection of loan products, and a streamlined process that delivers effective results without unnecessary delays. Our commitment to service is personal. That’s why we listen carefully and work diligently to match you with your best home loan. To learn more about our services or schedule a consultation with one of our experienced loan officers, contact us today.