How to Shop for a Home Mortgage

Many home buyers find themselves rushing to get a home mortgage after they’ve found the home they want to purchase. In addition to costing you as a consumer, time, energy, and money, it can also cost you the ideal property. In order to get the best home mortgage available to you, start the process well before you begin house-hunting.

Find a Mortgage Lender

Loans are available from several types of lenders, such as; Mortgage Brokers, Mortgage Bankers and Portfolio lenders. If you don’t have an existing home mortgage connection, ask your Real Estate Broker for lender referrals. You can also read more about choosing a lender here.

Get Home Mortgage Information

Shop for available home mortgage loan types as you do your home. Ask your lender to educate you about your home mortgage options and which is best for you; Conventional, FHA, VA or USDA loan products. Be well versed in your options, know what they cost you, and ask your lender to provide you with a ‘Good Faith Estimate’ (GFE).

Also, make sure to get details on the following:
• Rates
• Points
• Fees
• Down Payment Requirements
• Private Mortgage Insurance
• Special Programs You May Qualify For

Get Approved

Get pre-approved, because being pre-qualified is not enough in a seller’s market. Buyers who are pre-approved are able to make much stronger offers than those who aren’t. In fact, there are many sellers who won’t consider offers from buyers that aren’t pre-approved. Once your home mortgage is pre-approved you can start shopping for your starter home, dream home or investment property.

Get an Advantage

For the best advantage, don’t stop with pre-approval; get your loan fully underwritten while shopping for your new home. Stay in close contact with your lender, discuss with them the pros and cons of written lock agreements and be ready to lock your loan at just the right time.

Give us a call, we’re happy to answer your questions and help you Be Home Mortgage Ready!

The FTC offers excellent advice on shopping, comparing and negotiating, along with valuable tools, worksheets and a glossary of terms.