Many buyers believe that when they are ready to purchase a home, the first step is to start looking at properties. In fact, there are a few steps that need to occur before this, and aside from choosing your realtor, the most important step is talking to a mortgage lender to get pre-approved, and figure out what your current financial situation is. So let’s talk about choosing a mortgage lender, where to start looking, when is the right time to talk to a mortgage lender, and what are the benefits of using an in-house lender.
where do i look for a mortgage lender?
Many people are nervous about talking with a mortgage lender, and will sometimes try to get their pre-approval online because of that. There is really nothing to be worried about when considering talking to a mortgage lender. It is fast and painless, and can reveal so many more options to you than just applying online. Here are a few places to start looking:
Ask your realtor for a recommendation
Check with your current bank to see if they have any mortgage programs
Look for recommendations from your friends and family
Is it too early to talk to a mortgage lender?
No, it is not too early to talk to someone! We have worked with a lot of buyers that were worried about talking to a mortgage lender too soon. Some common fears are:
Not ready to buy for a few months
Not enough assets
Credit issues
Have not been working at their job long enough
Too much debt
Not ready to make such a big commitment
Here at Keller Williams Real Estate, we work with trusted mortgage professionals that will talk to you for FREE with NO obligation. They can guide you through the mortgage process and answer any questions you may have. They will help you answer those important questions like: should I pay off my credit card, what credit score do I need, how much do I need to be saving each month, and any other questions you may have. Talking to a mortgage professional does NOT mean you have to work with them, but can give you valuable information to get you ready to purchase a home.
Benefits of working with an in-house mortgage lender:
Talking to a mortgage lender that is in your Realtor’s office can give you a lot of benefits. The realtor and lender are able to coordinated efforts to get you the best possible options for your individual situation. Not to mention, the ease of communication and added accountability when working with an in-house lender can be very beneficial during the process.
There can be many last minute situations that may arise right before settlement day. Often times, the lack of communication when working with an unfamiliar mortgage lender can be the difference from settling on time, and having to push back settlement day.
Let me give you an example. We’ll call the buyer, Colleen, and the mortgage lender, Joe. Recently, I was working with a first time buyer, Colleen, who shopped around and decided not to use one of our in-house mortgage lenders. We encourage everyone to shop around to find the best fit. It is completely up to you who you choose to be your lender. Colleen talked to a few different lenders before deciding to work with Joe. When she first started talking to Joe, he was great. When Colleen called, he answered the phone promptly, and answered all of her mortgage questions. He got her pre-approved, and when it was time, she completed the full mortgage application with him.
Fast forward a few weeks, and we were getting close to settlement day. As a first time buyer, Colleen was a little nervous and wanted to make sure she had completed everything. She tried to call Joe but he did not answer or get back to her for a couple of days. She voiced her concerns to me, and I tried to call Joe as well. Since Joe’s office was not in our area, there wasn’t really anything I could do, except wait for him to call back.
Now, if my client had decided to use one of our in-house mortgage lenders, we could have resolved the situation a lot quicker. Since we work in the same office, we already have a professional, and friendly relationship, so our mortgage lenders are more likely to keep me in the loop to what is going on. Also, if my client could not get ahold of one of their lender, I could have walked down the hallway and asked what was going on. Having a professional, and friendly, relationship with our in-house mortgage lenders has been a great benefit to our clients, and has kept the process moving smoothly.
Are you thinking about purchasing a home soon? We would love to chat with you, and set you up with one of our mortgage professionals to talk about your individual situation. Ask us how, and check out our FREE How To Purchase A Home guide to learn more about the home buying process. If you missed our last post about how to fix your credit, you can check it out HERE.
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