Mortgage brokers are the professionals you work with when buying a home to find you the best mortgage loan for your situation. They can help you get the best interest rate on your loan, choose the right mortgage products for your situation, and guide you through the home-buying process.
So how do you find a good mortgage broker in Folsom and the county of Sacramento? How do you know who’s right for you? This blog will answer these questions and more so that you can make an informed decision about which mortgage broker best suits your needs when it comes time to get a mortgage locked down.
Finding a mortgage is more than just finding the lowest interest rates. It’s also about getting the most for your money and being able to afford your monthly loan payments. However, this can be difficult if you don’t have all the facts or understand what lenders are looking for when they discuss rates and fees.
The right mortgage broker and type of home loan depends greatly on your financial needs and goals. Buying a home is one of the biggest investments many people make, which is why it’s important to think about what is important to you when choosing a mortgage lender.
When you’re shopping around for a lender, you will use the same information to find out how to choose a lender for pre-approval. Once that stage is finished, you can take steps toward getting your loan funded.
Shop around
Now that you’ve decided to find a new mortgage, it’s time to consider the best options available. If this is your first home purchase, you don’t want any lender. You want to know how to find the best mortgage broker. To make sure you get the best deal possible, use these tips:
- Compare rates and terms. Ask about rates and fees when shopping for mortgages online or in person. You’ll also want to compare how each lender handles closing costs and underwriting requirements (determining if you’re eligible for a loan).
- Compare interest rates and fees across all lenders before deciding where to apply for financing; don’t just choose the one with the lowest rate when comparing quotes from multiple lenders.
- Do some research on customer service at different institutions so that you know which ones are known for being helpful when there are issues during closing or later on down the road when things aren’t going well with payments or other problems arise in homeownership!
Do your research
Understandably, you may be feeling a little anxious by the amount of research required for this process. But the more you know about what’s out there, the better your chances are of finding something that will work for you and your family.
There are many ways to understand how to find the best home loan:
- Research the market. Browse online or speak with local real estate agents to understand current market conditions in your area. Knowing how many homes have sold recently (and how much they sold for) can help inform which kind of mortgage might be right for you. If home prices tend to increase quickly, but interest rates tend not to follow suit, refinancing might make sense instead of buying a new home because those payments would be lower overall.
- Research lenders. Consider working with a trusted lender instead of going through an unknown agent or website operator.
- Research products. Look into different types of loans and see what each one offers in terms of interest rates and repayment schedules.
- Research rates. Check if any fees are included in the advertised nominal interest rate. If there is an origination fee, it can greatly inflate the effective interest rate that you pay over time.
Understand your credit score.
Your credit score is a number that lenders use to evaluate your ability and likelihood of repaying a loan. The higher your score, the better your chances of getting approved for loans with lower interest rates and fees.
The most common type of credit report used is a “FICO” score, created by Fair Isaac Corporation (FICO). You can access this information through several websites, such as CreditKarma or FreeCreditReport.com.
It’s important to understand how you can improve your FICO score to get approved for better mortgages and save money over time on interest payments.
Get accurate estimates.
The next step is to get an accurate estimate of what you can afford in monthly payments. Banks, mortgage companies, and other lenders offer estimators that allow you to plug in your income and debts, so they can estimate the size of a loan you qualify for. You may also be able to find them in the lender’s office itself but be careful not to fall for any sales pitches or gimmicks that may come along with them.
Be aware of financial jargon.
There are a lot of terms to learn and understand when it comes to mortgages. It can be hard to know what you’re getting into if you’re unsure about the process. Here are some common terms that may confuse you:
APR – This annual percentage rate measures how much interest you’ll pay over time. The higher your APR, the more expensive your loan will be (but there are other things to consider as well).
Suppose a lender offers you one product with an APR of 3% and another with an APR of 4%. In that case, it’s smart to go with the lower rate even if their product isn’t as good since they’ve offered better rates in other areas, like closing costs or fees associated with refinancing.
Interest Rate – What most people think they mean by “interest rate” refers specifically to fixed-rate loans; variable-rate loans have their own separate measure called APRs (annual percentage rates).
Read the small print.
- To know what you’re signing up for
- To be sure that none of your rights are being violated or restricted by any clause in the contract
