Considerations When Shopping For a Mortgage

When it comes to finding a mortgage, there’s more to consider than simply getting a low interest rate. In today’s post, we’ll review some of the key considerations that you should make when shopping for a home loan.

In House Underwriting

Mortgage turn times can vary from lender to lender. However, in-house underwriting can help reduce turn times by providing easier and faster communication between the loan originator, processor and underwriter. If there’s a question or an error, the originator can connect with the underwriter (who may be just a few doors down the hall) in a matter of seconds, rather than having to reach an underwriter who may be hundreds of miles away and wait for a response.

Product Selection

Even though the conventional 30 year fixed rate mortgage is probably the most common home loan type on the market, you wouldn’t do yourself any favors by working with a mortgage company that only offers the “popular” choices. By working with a lender who offers a wide selection of mortgages, you could potentially find a loan program that is less common, but more beneficial for your needs and finances.

Experience

As with any other profession, experience is highly important in the mortgage industry. By working with an experienced mortgage professional, you can have added peace of mind, get your questions answered clearly and quickly, and know what it’s like to have a loan originator anticipate your needs. This is one of the key factors that tends to go by the wayside when borrowers get lured in by low teaser rates they see online or hear about on TV. Remember, rock bottom rates might sound appealing, but more often than not, those rates are only available to a select few borrowers and are simply used to get borrowers to call. Instead of focusing on who has the lowest rate, focus on who has a reasonable rate and a lot of experience!

Broker vs Lender vs Bank

There are three main channels for finding a mortgage: going through a mortgage broker, a mortgage lending company (like us), or using a bank. Each option offers different benefits, and it may simply come down to personal preference. However, using a direct lender mortgage company offers a few select benefits that the other options do not:

• One-Stop Shopping – You deal directly with the source of your loan
• Possible Savings – As the loan originator, using a direct lender may save you money in the loan process
• Fast & Efficient – Direct lenders may process your loan faster than brokers

Where can you get more information?

If you are in the process of selecting the right mortgage for your home, be sure to consider all of your options. Reach out to one of our professional loan experts at Luxury Mortgage to help you discover options that are ideal for your needs.