Finding the right mortgage lender to get that preapproval for a mortgage might seem daunting. Good news—your buyer’s agent is here to help! Ask your agent for recommendations and you can rest assured that they will give you the names of mortgage lenders they trust.
At Nest Realty, we love all things local. That includes mortgage lenders! Why should you seek out a lender with a local presence? One word: accountability. Local lenders are accountable not only to you (their client), but also to your agent (with whom they hope to continue working) and to the local community.
Before you meet with mortgage lenders, do your research on how much you can comfortably afford to pay each month. A good rule of thumb is to aim for about the same amount you’re paying now for housing (or lower, if possible). If you feel you can afford to pay more per month, calculate how much makes sense and compare to what you’re saving per month now. Some lenders will offer you more money than you should really borrow. Just because you can qualify for a large amount doesn’t mean you should take it all! Having a number in mind can help keep conversations realistic.
Remember, the mortgage rate is not the only cost you need to consider. Talk to your real estate agent about other fees you’ll encounter and the process of meeting with lenders, and you’ll be in good shape to take the next steps toward owning a home.
Five questions to ask your lender:
What kind of loan do I qualify for? Conventional? VA? FHA? There are several types of loans, and each has different qualifications.
What are the interest rates? The lower the interest rate, the less you’ll have to pay per month and long term. Rates fluctuate all the time, so ask your lender and agent for advice on scoring the best rate.
What would my monthly payment be? Your monthly payment will typically include taxes and interest, so double check to make sure you can afford the total per month cost of homeownership. Many lenders can give you multiple quotes based on how much money you put down, the total home cost, and more, so feel free to compare.
What is included in this quote? Usually lenders provide a breakdown of projected costs, but it can be confusing finding and tallying all the line items. Speak up and ask about anything that baffles you!
Will you continue to manage my mortgage after closing? Many mortgage lenders transfer ownership of your loan to a third party company after closing. This is normal, but can be confusing, so ask if you want answers.