Adventures in 1st Time Home Buying
“Choosing Your Mortgage Lender”
My name is Rich Jacobson, REALTOR, and Licensed Broker with the Sound Realty Team, powered by Fathom Realty here on the Kitsap Peninsula in scenic WA State.
Way back in 2007, I published a series of articles here on ActiveRain entitled “Adventures in 1st Time Homebuying.” I thought it would be fun to revisit and refresh those articles, and put together some corresponding videos to go with each article.
If you’re buying a home for the very first time, I hope you’ll find these videos and articles helpful, as we walk through the primary elements of buying your first home.
The first step in the home buying process is identifying and committing to a qualified mortgage lender. This is a crucial first-step in the process, and will set the stage for everything else that follows. Your Mortgage Lender will carefully evaluate your current financial status and income, and determine your budget for purchasing a home. This budget amount drives the entire process and helps to narrow the scope of your home search.
Many people simply connect with the bank, savings & loan, or credit union they use for their everyday checking & savings accounts. It's important to know that there can be significant differences in rates, available loan products, and actual loan costs among various lending institutions. Since this is likely one of the largest investments you will ever make, you owe it to yourself to investigate & interview at least 2 to 3 lending sources. Ask your REALTOR if they have a preferred lender they trust and would recommend. Look up legitimate reviews posted by actual past clients of the lenders you are vetting. Check with valued friends who have recently bought a home and ask for their input as well.
While there are many qualities that you’ll want to look for in a good mortgage lender, allow me to share just three, the 3 R’s of a Mortgage Lender:
Reputable – make sure that your lender has a solid reputation in the market they serve, and a proven track record for getting loans closed. Ask them to share the names and phone numbers of recent past clients who could provide a good testimonial of their services.
Responsive – you deserve a lender who is easily accessible and responsive to your needs. If your lender isn’t in your own time zone, it might be challenging to get ahold of them. Many times when looking at homes over the weekend, you need to have a pre-approval letter drafted quickly to submit along with your offer. Is your lender easily accessible over weekends and after normal business hours?
Relentless – you need a lender who is going to work hard for you, and help you achieve your goals of buying a home. Make sure they have systems in place to ensure effective communication and accomplish tasks through every stage of the process.
Once you’ve committed to a qualified, experienced mortgage lender, they will work with you to determine the specific type of loan that is best for you, and establish a price range of home that fits your budget.
See you next time when we discuss “How to choose your REALTOR”
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