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Finding a mortgage lender is going to be one of the easiest steps in your real estate journey. This article will tell you what to do and things to look for.
Where To Start
The simplest way to find a lender is to do an Internet Search for one. Type in “mortgage lender near me” and watch what populates. Afterward, make a list of companies or individuals that pop out at you. You can also ask the people you know who they used and if they liked them. By the way, here’s a secret sauce of real estate by the way:
ALWAYS TRUST YOUR GUT
If someone seems shady, keep looking. There really are fantastic lenders out there. Moreover, trust your gut in general through this process and in life. If a house, a realtor, some guy on the street, gives you the heebie jeebies – run.
Back to Your Search
My recommendation is to pick three lenders that you are interested in, which would be at:
- A mortgage company
- A credit union
- A bank
They all have different programs and you should see what they are about.
The next step after picking them is to FaceStalk them. This means checking their social media accounts, Google reviews, and anything you can find online. If this feels strange to you, let me quote Elsa from the Frozen movies:
“Let It Go”
Basically, if someone is going to make a bad impression with their social media, there’s a good chance they could do a bad job with your loan.
There are a few things you are looking for:
- Are they responsible?
- Do you like them?
- Can you trust them?
If you see red flags – next!
What To Do Next
Once you have finished this research, schedule meetings with everyone. They might ask you for personal information or to bring in some forms like pay stubs. This is so they can pre-qualify you. Simply put, they take a quick look at your finical situation and see what you qualify for. In other words, what your price range is. Here is how I would go about meeting with them.
First, I would go to the Credit Union. They generally have great rates and don’t mess around. There are a handful of options and that’s it. No horse trading. Ask for a copy of their loan offer. This will include rate, insurance, payments etc. Subsequently, I would go to either the bank or mortgage company. Use the offer from the Credit Union to “rate shop.” Rate Shopping is going to different lenders and finding the best offer. Part of what the best offer is, is up to you.
Do you care about monthly payment or total cost of the loan more?
These kinds of things can affect the deal you get.
Another thing to consider, and just so you know I told you, each lender is going to do a soft pull on your credit: You will get a small ding on your credit. It is stupid, awful, and don’t even get me started on the credit agencies…
But I digress–you will get a ding. Still, it can save you money.
Personally, we saved over $10,000 over the life of our loan doing this. I STRONGLY encourage shopping around.
That is it in a nutshell. If you have any questions, please send me a message.
