Buying a new home is an exciting time in your life. In order to ensure a positive experience, it’s important to properly prepare yourself before jumping in. One of the most valuable ways to do this is by finding a great lender. So how do you decide who would be the best lender for your needs?
Check Your Credit
When it comes to buying a home, a good place to begin is by giving your credit history a pulse check. Knowing where you stand will be important when it comes to working with a lender on your mortgage application. Do yourself a favor and request your credit score from the three major bureaus before beginning the lender search. If you think your credit score needs improvement, many lenders will be happy to share some advice for boosting it prior to submitting a mortgage application.
Understand Types of Lenders
If this is your first time buying a home, you may be surprised at how many different options are out there when it comes to choosing a lender. Before you even begin, you will want to determine the type of lending institution you prefer to work with.
Local Banks
The great thing about working with a local lender is that you will often find the experience is more personal and you may even qualify more easily since smaller banks often follow different regulations and keep mortgages in-house. The only real downside is that you may have fewer loan options to choose from at a smaller bank.
National Banks
Working with a large bank can provide you with peace of mind when it comes to credibility, but it may also be challenging to find personalized service since you will be working with such a big institution. If that isn’t overly important, you may find this type of lender fits your needs and can be more convenient since you can submit and manage your mortgage application online.
Online Lenders
This type of lender only operates online so don’t expect to pop into a physical location when you need a question answered. On the upside, this type of lender usually offers lower mortgage rates and fees, but it is important to carefully vet the company before applying to ensure it is legitimate.
Credit Unions
Working with a credit union can be advantageous when it comes to getting a better mortgage rate. The only caveat is you will need to be a highly qualified applicant since credit unions tend to uphold stricter lending regulations.
