Mortgage lenders offer loan programs for buying or refinancing a loan. Typically, a conventional lender such as a bank can offer higher loan amounts and the best interest rates. At the same time, these lenders have more strict credit requirements. More lenient credit qualifications are available for Federal Housing Administration (FHA) and Department of Veterans Affairs (VA) loans. They also have lower down payments options.
So how is someone supposed to choose a mortgage lender? Start by asking someone close to you -who has recently gotten a mortgage- who they recommend. Ask an accountant, financial adviser, attorney, or your realtor for their opinions. They all deal with mortgage lenders on a regular basis.
Search the internet for mortgage lenders in your area. Read reviews, visit their websites and take notes. If you come across an advertisement make sure you read the fine print. Find out about fees, points, lock-in periods and qualification requirements for what is being advertised.
Sit down and talk with mortgage lenders in person. Choose two or three so that you can compare quotes and rates. Compare the options they offer you with online companies. There are a number of online companies that provide quotes from several lenders who will compete for your new loan. There is no obligation. You can review their loan offers and compare them to the local offer you got in person.
What will you need to get a mortgage? You will need a driver’s license, secondary ID, your most recent pay stubs totaling one month, W2 forms for the last two years, federal tax returns for the last two years, two months worth of recent bank statements and purchase contract for the property. Take your time when choosing a lender. Although you may be in a rush, remember that this is a decision that requires some consideration and comparison.
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