Financing the purchase of a house from personal savings might mean a mighty long wait for the end of rent-paying. This reason is why most homeowners in the US today are using mortgages. If you want to buy a house and don't have enough in your savings account, you will want to hook up with a lender. But how do you know which lender to choose from the myriads out there? Here are some key pointers:
Interest rate
The interest rate should be the deal breaker when choosing a lender. Take time to compare the rates of as many lenders as you can. You will find several tools online that can help you do this quickly. Some mortgage companies will offer you a loan with a down payment of as little as 3% of the purchase price, but they make up for this with a higher interest rate.
Speed
With some lenders, you may have to wait months before your approval sees the light of day. Such lenders will typically require you to fill a plethora of forms when applying for your mortgage and support your application with a ton of documents. Many innovative lenders have come up with platforms that allow you to upload documents securely and complete the entire application process online.
Bad credit
For some lenders, especially traditional banks, a bad FICO score is an automatic "no". Others will still extend financing to you even if you have a credit rating below 600. However, perhaps you should keep in mind that such lenders will make up for the risk they're taking on with a higher interest rate.
Reputation
You may have a referral to a lender from relatives or colleagues, but before you begin your application with them, do a bit of digging of your own. What reviews come up when you search on independent online sources? Consumers Advocate has a listing of top-rated lenders, as do many other referral sites.
Customer service
How quickly does the lender respond to queries, and do they provide comprehensive feedback? If you would rather talk or meet your mortgage officer during the application process, is that option available? Some companies operate entirely online, with no brick-and-mortar presence. If you would rather have that personal touch, you could be better off with a traditional bank.
About the Author
Marsha Charles
Consistent top listing and selling agent receiving Chairman's Club award for superior sales achievement almost every year while associated with Preferred Properties, Inc. Consistently receive the International Presidents Premier award for sales volume since joining Coldwell Banker Realty and ranked in the top 1% of agents in Connecticut and Westchester County. In 2021 I received the International Society of Excellence award for sales volume in excess of $100,000,000. I have been named a Top Five Sales Agent for customer satisfaction since 2010 (longer than any other agent in Connecticut) and listed in Connecticut Magazine. Named one of the Top Agents in Connecticut by Real Trends since 2018.
I work with sellers and buyers and also have a strong understanding to needs of those who are relocating . Background and experience in advertising, public relations and photography offer creative and innovative marketing plans for sellers.
Realtor designations include: Graduate Real Estate Institute, Certified Residential Specialist, Certified Residential Marketing Specialist, and Pricing Strategy Advisor. Served as President of New Canaan Board of Realtors (two terms), Director (three terms) and currently serve on Professional Standards Committee. Named Realtor of the year by the New Canaan Board of Realtors in 1994and again in 2022.
Married and mother of other of four children who attended and graduated from the New Canaan School System, Member of New Canaan, Darien, Greenwich and Statewide MLS systems. Areas covered include New Canaan, Darien, Greenwich, Rowayton, Norwalk, Wilton and all of lower Fairfield County.
