Whether you are purchasing a home or refinancing your existing home, the guidelines for choosing a lender are pretty much the same.
Most people, when needing a mortgage for either a refinance or a purchase, are primarily concerned with interest rates and rightly so. However there are other factors to consider that will affect the quality of the mortgage you get and your ability to pay it back and build equity. These are most often the key considerations.
Mortgage brokers are extremely helpful in finding the best lender because they have access to multiple lenders. Banks have only themselves and you will be confined to their rules and parameters if you just go to your bank and ask for a mortgage.
The first step in your due diligence should be to ensure that your credit is in good shape. No matter where you go or for whatever type of mortgage, credit will be key with any lender. So make sure that your loans and credit cards are paid each month on time and that you are not over extended with debt.
Make sure that all of your income taxes are paid up. Many people are not aware that they cannot get a mortgage if they owe money to the government.
Now that both of those issues are out of the way, your mortgage broker can sit down with you and based on your income come up with a plan that is tailor made for you. Once he or she has all of your information then they can choose from their lender list the one who will best suit all of your needs.
The interest rates may vary from lender to lender and so does the criteria. Some lenders have different penalty clauses for paying off the mortgage before the maturity date. Some lenders may have different guidelines concerning income. You may want to have a short term or a longer term. So many options that the bank cannot offer to you, especially if you are outside of their box.
These are all things that would overwhelm the average consumer if they were to try and sift through them themselves. That is why people just go to their bank and take what they are given. However, these folks are likely not aware of how easy it is to use a mortgage specialist and let him do all the leg work. And it’s free!
We come to you and we take all of the stress out of the process while providing you with options. Let us use our expertise to find the best lender and the best mortgage for your refinance or purchase. It’s our pleasure!