4 tips for finding the best lenders

By RealtyCrunch IncApril, 24th 2020
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4 tips for finding the best lenders

To stay ahead of the mortgage process, here are a few tips to finding the best lenders:

1. Get your credit score in a good position: Let’s start with a full credit score evaluation by asking one of the three major credit bureaus: Equifax, Experian, and TransUnion. Once you get the report, analyze it to see how you can make improvements like lowering your debt, paying off credit cards, and recurring loans.

2. Know the lending landscape: There are a few common type of home lenders:

  • Credit Unions: member-owned financial institutions that often offer favorable interest rates to shareholders
  • Mortgage bankers: Work for a specific financial institution and package loans for consideration by the bank’s underwriters
  • Correspondent lenders: usually local mortgage loan companies that originate, underwrite, and fund your loan using their own loan. However, after the closing, they normally sell your loan to a larger primary lender like Wells Fargo.
  • Savings and loans: Smaller specialized banks created to promote affordable home ownership
  • Mutual savings bank: a type of thrift institution originally designed to serve low-income individuals.

3. Get Pre Approved: Securing a mortgage pre approval letter before you start looking at houses will definitely give you an edge over other buyers. This is because it shows the seller that you’re a serious buyer and have a higher likelihood to close.

4. Compare rates from several mortgage lenders: Buyers can easily shop online for the best mortgage rates to compare cost and decide which one makes the most financial sense for you.