How to Reach Out to a Mortgage Lender: Finding the Right Advocate in Your Home Buying Process

December 9th, 2021

home ownership

If you are buying a home, you will need a mortgage lender to help you fund it. There are many mortgage lenders available, so finding the right one can be difficult sometimes. Here, we will look at how to reach out to mortgage lenders so that you can find the best lender available to help you finance your dream home.

How to Find a Mortgage Lender

You should ask a lot of questions to help find the best mortgage lender in your area. Look at the information we will cover here. Ask every lender you reach out to about down payment requirements, rates, loan terms, fees, and closing costs. And there are a few other things you can do to help you find the best lender.

Preparing to Find a Mortgage Lender

Check your credit score and work on improving it before getting pre-approved for a mortgage. Pay off credit cards and other loans to help you build up your credit score.

Save for a down payment and fees. There are some loan options that allow you to buy the home without a low down payment, but that does not mean you should not save up. Even if you can get a loan with zero a low down payment, you will still need money for closing costs.

Make sure you have a stable income before you start shopping for a mortgage. A lender preferably wants to see that you have had your job for a while and that you make enough money to make your monthly mortgage payment. However, there are scenarios where you can get approved for a mortgage with a solid offer letter and not having started your job yet.

Types of Mortgage Lenders

There are a few different types of lenders out there that you can reach out to for a mortgage loan.

You can get a loan through a bank, a credit union, a mortgage broker or a mortgage company. There are pros and cons to each type of mortgage lender. The most important thing to consider is how responsive and educated the individual mortgage loan officer that you will work with is. The mortgage loan officer can make or break a transaction, and paying attention to their experience, responsiveness and how they educate you is critical.

What to Ask a Lender

There are a few things you can ask a lender to help you determine if they are the right fit for you.

  • How long will the loan process take?
  • Are you my main contact, or is someone else taking over when the application goes to the underwriter?
  • What is the best communication method for you?
  • What steps will take place in person, and which ones will happen online?
  • How long will the interest rate lock for? If we do not close before then, through no fault of my own, will I have to pay to extend it?
  • What are the various topics that you will educate me on? 

How to Compare Mortgage

Once you have found a few lenders you are interested in borrowing from for your mortgage, the next thing you will need to do is compare them to determine which one is the best for you.

Compare Interest Rates

Interest rates change daily, so when you decide on your lender, you will want to get your rate locked in right away to ensure it does not go up before you have finalized the application. and sometimes can change multiple times a day, so comparing terms on the same say, at around the same time of day, is important. But interest rates are not all that matter.

Compare Fees

A mortgage loan comes with fees, and as is often the case with fees, the reason for the fees is not always clear. The lender might just lump all of the fees together  instead of listing them individually. Ask them what each fee is and compare those against your other lenders. Mortgage Insurance Requirements

If you are not paying 20 percent as your down payment, a lender will most likely require you to get mortgage insurance. Look at the terms for the mortgage insurance and compare those.

Compare Monthly Payments

Another thing to evaluate when looking for the best mortgage lender for you is what your monthly payment will be from each prospective lender. Which one is best for your budget? Of course, you can always try to negotiate a lower monthly payment, too, if one lender has better terms but higher payment.

Compare Loan Officers and the Process

The lowest price is often times not the best value. You can get the lowest price around, but if the service is not delivered, or not delivered on time, or sevice provider delays cause you penalties, was it the best value?

Taking a hard look at the loan officer’s experience, reviews, ability to educate you and responsiveness; will all give you value and an insight into how your transaction will unfold.

Read the Fine Print

Take the time to look over all of the fine print. There might be something in there that can come back to haunt you in a few years, so you will want a warning of that before you decide to go with them as your lender.

Final Thoughts

Once you have compared everything and determined which lender is the best option for you, you can complete the application process. From there, you can finalize buying your dream home and move in.

Brian Martucci is a loan officer for Capital Bank Home Loans, a division of Capital Bank, N.A. He has been in the mortgage industry since 1986 and has served in a number of roles, including loan processor, loan officer, mortgage broker, branch manager, and vice president. Brian Martucci – NMLS# 185421. His opinions do not necessarily reflect the opinions and beliefs of Capital Bank Home Loans or Capital Bank. Capital Bank, N.A.- NMLS# 401599. Click here for the Capital Bank, N.A. “Privacy Policy”.

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