About a third of the US population doesn’t understand the ins and outs of mortgages. So if that’s you, you’re not alone! It’s normal to have no idea what down payment is required, what APR means, and how to find the best mortgage lender. You’ll want to learn a few things before going in so you make sure you don’t pay any more than is necessary!
One of the most critical aspects of the whole process is finding the best mortgage lender. This guide will explore the most important things to consider when finding the right mortgage lender in the Stuart.
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Get Multiple Quotes from Multiple Lenders
Be sure to compare the rates and fees that each mortgage lender in Stuart charges. Compile a list of five mortgage lenders that will give you quotes for your property value, loan terms, and possible down payment. Compare and contrast them! Each mortgage lender will offer different rates and terms. Look for the best all around deal.
Ready To Take Your Next Step?
Look at Reviews
Since the home-buying process is not the easiest process, especially your first go-around, you’ll definitely want to take into consideration the experience the lender provides. Look at reviews and make sure this lender truly has your back—they will be guiding you through the whole process. Look for things like “great communication”, “guided me through the process”, “made sure I was always up to speed”, and “stress-free”. If you see those words and phrases often, it is a good sign.
Once you start looking into the company and see that their main focus is to make money instead of treating people fairly, we recommend moving on and finding a different one as soon as possible. Check what other consumers have to say about them from their website and other review websites like Google and Yelp. Check testimonials as well and ask the lender to provide you with past referrals you can talk to.
Learn some Mortgage Terms
If you want to go above and beyond, it’s not a bad idea to learn some mortgage terms ahead of time. These are things you’ll learn along the way, but it’s much better to go in prepared so you can make intelligent decisions when a lender lays out their offer. There are great mortgage term guides out there to start going over, and great YouTube videos that break these things down. There are handbooks and guides out there to help you as well. Annual percentage rate, appraisals, and closing costs… oh my!
Research the Lender’s History, Fees, and Costs
You need to know what to ask for when it comes to fees and costs. Ask your lender for a layout of all these fees and what is included in them:
- Origination fee
- Processing fee
- Application fee
- Late payment policy
- Penalties and prepayment penalty
They could end up charging you thousands of dollars if you don’t know to ask about these. Some fees, like application or processing ones, can be avoided by applying directly with your desired lender instead of going through a real estate agent!
Consider How Much Down Payment the Lender is Asking For
Different lenders have different requirements before lending out any funds. Some may ask for 20%, while others ask for as little as 5% down payment, which will largely depend on your credit score. Generally, the more down payment you can put, the better. It will help lower the fees you are charged since the risk of lending to you goes down. The down payment will affect how long you spend paying for the mortgage and how much you end up paying in the end.
Not everyone can afford high down payments though, and that’s okay! There are many programs available to help. Ask your lender what programs are available, and what exactly the fees are on the backend that allows for the lower down payment. If you are a Veteran, be sure to look into VA loan options to access the benefits available to you—often no down payment is necessary.
Get it in Writing
After you’ve found the best Stuart mortgage lender you can find, make sure that you get everything put into writing. This ensures that there are no misunderstandings about what you’re getting yourself into.
If they try to convince you otherwise, ask them for an official contract or agreement so that it can be written down on paper and signed by both parties. This way, everyone knows what will happen if anything goes wrong as terms and conditions can often be confusing to interpret.
Be Cautious of Hidden Fees
If there’s one thing you want to be sure of when comparing mortgage companies, it’s that you read all the fine print before signing anything. You don’t want to end up having your credit score wrecked because you weren’t aware that there were some hidden fees associated with taking out the mortgage loan.
This will often come back to bite you later on down the road. It’s a vital part of the whole process. When reading through your contract or agreement, check for clauses that could potentially help them raise their interest rates in the future without your knowledge. If they do this, there’s nothing you can do about it legally because you’ll be informed in the fine print.
Finding the Best Mortgage Lender in Stuart
Are you looking for the most reputable and reliable mortgage lender in Stuart? This guide will take you through all the steps involved in locating the best one. Make sure you conduct thorough research, compare several lenders, and read the fine print before signing anything.
You can save yourself the trouble and give us a call, and we’d be happy to discuss the best mortgage terms that will suit you best.